I mentioned the possibility that we could see some carry over from Wednesday's close. Then we got poor employment numbers followed by the action of the IEA. These two news items exaggerated the move down. I would guess it added 150-200 points to the down move as they supported the possible continuation of Wednesday's close.
Then during the day the shorter cycles kicked in and moved the market up. By 2:30-3:00 about half of the severe early sell off had been wiped out. Then shortly before 3:00 PM we got news that an agreement between the IMF-EU-Greece had been reached. This supported the short cycles up move and by the close most of the early day sell off had been eliminated.
News can and does affect cycles. In this case we saw the early market (that probably would have been down) down much more than one would reasonably expect. So the news supported the probable market cyclic action and we had a severe sell off. In the afternoon the IMF-EU-Greece news supported the push up by the shorter cycles and almost wiped out the early day sell down. Still it seemed to me we could see the effect of the cycles (especially between these news events as the shorter cycles pushed up). Yes, news can and does affect the cycles (depending on the news it may exaggerate or suppress the cycles). Today was a great example of news exaggerating the cyclic moves.
Tomorrow we have the shortest cycle - the 2.8TD cycle topping by midday. The 5.6TD cycle is up, The 11.2TD cycle is down. The 22TD cycle is up. So it seems in the early session we may have an up bias, but by afternoon it is down bias from the shorter cycles.
The 20week (Wall) cycle provides moderate down pressure. The 1 year cycle is down hard as it pushes toward a bottom in early July. So, in summary we may get a small rally early in the day followed by what could be a somewhat vigorous sell down in the afternoon. If course that assumes the PTBs don't pull more rabbits out of the hat.
Here is a visual using the SPY:
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