Daily Index Cycle update

The main indexes all closed significantly lower, with the sp -1.4% @ 1661, a very decisive close under the old support floor of 1675. Near term trend looks weak - although a bounce briefly back into the 1680s is viable. Mid-term outlook is for downside to the sp'1575/50 zone by mid September.


sp'daily5

R2K

Trans

Summary

For the bears, it doesn't get any better. A straight forward gap right under the old support floor, and then just continued weakness across the day. Despite renewed attempts to rally after late morning, the bulls failed, with the market settling very close to the lows.

The only issue remains whether the bulls can stage a recovery bounce into opex/early next week, before a continuation downward.

Mid-term downside now seems relatively assured into September. The bigger wave count - even on the hyper-bullish outlook, is suggestive of sp' back in the 1500s.
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a little more later...