Daily Index Cycle update

US equity indexes closed broadly higher, sp +11pts @ 2027. The two leaders - Trans/R2K, settled higher by 1.1% and 0.7% respectively. Near term outlook threatens a Thursday gap higher to the price gap zone of sp'2038/43.. before a key top is put in. Sustained action >2040 looks extremely unlikely. First soft downside target is the 1940/30 zone.


sp'daily5

Dow

Summary

Suffice to add, a lot of chop.. but with the Fed touting 'the economy is improving, we'll only need 2 rate hikes'.. the market was comfortably able to hold gains into the close.

However, a key turn looks imminent. Prime area for a reversal is the gap zone of sp'2038/43 - with Dow 17405/425.. which is certainly viable early Thursday.

From there.. first downside target is the 50dma/lower daily bollinger.. in the 1940/30 zone next week.

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a little more later...