Daily Index Cycle update

The main indexes saw the second consecutive day of significant declines, sp -38pts @ 1790. The two leaders - Trans/R2K, saw powerful declines of -4.1% and -2.4% respectively. Near term outlook is for general weakness, down to the 1780/60 zone.


sp'daily

Dow, daily

Trans

Summary

Well, that is one way to conclude the week! The first really significant two day decline since May 2012, with the VIX gaining around 30% in the lower 18s.

With the break <sp'1815..along Dow <16174..there is natural downside to the 1780/60 zone, where there is plenty of price cluster support.

The real question is whether we've just recently seen the conclusion of giant wave'3 from the Oct'2011 low...but more on that later...
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Closing update from Mr TopStep


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