Monthly/Weekly/Daily Cycles on Major Indices (by SB)

By -

Looking at a top-down view of the 6 Major Indices, I would note
the following.

Monthly View

  • + all just below the top of their recent highs
  • + Stochastics indicator is in overbought territory, except for DJT & DJU
    which is neutral
  • + major support is at the bottom Bollinger Band, which, generally, lies in the
    vicinity of the Monthly 50 sma (red)
  • + while the 50 sma is still (just) above the 200 sma on the SPX, it has
    recently crossed below on the ES, so it's now officially under
    the bearish influences of a "Death Cross" formation on the
    Monthly timeframe


  • + all at/near their mid-Bollinger Band
  • + Stochastics indicator is not yet in oversold territory on 5 of the
    Indices…NDX is now oversold
  • + major support sits around the vicinity of the Weekly 50 sma (red)


  • + DJI, SPX, NDX & RUT are at/below their lower Bollinger Band
  • + DJT is in between its upper and mid-Bollinger Band
  • + DJU is just below its mid-Bollinger Band
  • + Stochastics indicator is in oversold territory on DJI, SPX, NDX & RUT
  • + DJT & DJU are neither overbought nor oversold
  • + major support sits at the Monthly 200 sma (pink

In the short term, we
may see a bit of a bounce, but medium and longer term, these Indices may
continue their downward trek to alleviate their overbought conditions on their
Weekly and Monthly timeframes.

The following ratio
comparing the SPX, the RUT, and the NDX to their respective
Volatility Indices show that, while a lower swing low has now been made and the
Momentum Indicator (MOM) is below the zero level, each one is sitting at or just
above a support level on the Daily timeframe. Increasing volatility will confirm
any further selling in these 3 Indices. Of particular interest is the fact that
MOM has made a lower swing low on the SPX:VIX to confirm the lower low on price,
whereas it has not on the RUT:RVX and NDX:VXN…suggesting that today's
(Tuesday's) selling momentum on the SPX accelerated at a greater pace than on
the RUT & NDX…ones to watch during any further pullback to confirm an
acceleration of the selling momentum.