Indices began Friday with a strong first hour rally but the shorter term cycle forced a pull-back that surrendered a good portion of those gains. Our short term cycles are still in decline. These cycles should hold the markets back for a few more trading days. However, we may take a long position in SPY and SSO if our short term indicators turn up.

We don’t expect to see a strong decline during this short-term cycle weakness due to more powerful longer term cycles rising. These longer cycles may very well keep the broad U.S indices moving in a more sideways fashion with occasional choppy dips.

The year-end rally is still in the cards and shall not be ruled out.