Wednesday 23 January 2013

Daily Index Cycle update

Another day where the main indexes opened a touch lower, but closed higher. Once again, strong leadership was seen in the Transports and the Rus'2000 - both setting new historic highs. There is absolutely no sign of the current upward trend ending.


IWM, daily



SP' daily5


Trans


Summary

Well, what can be said?

We have the most incredible rally continuing, lead by the transports which is simply putting in an astounding rally from the lows in mid December, and the trend is actually accelerating.

Lets be clear, there really isn't any ceiling on how far we can go.

The market is propped up by the Fed, with 45bn of POMO money every month, and much of that money is surely finding its way into the equity market. Unlike 2009/10/11...this stream of 'free money' for the financial institutions will just keep on coming.

QE..indeed without end..and we're now probably seeing some of that money significantly help kick the market to new highs.


Wednesday - sp'1500s?

The huge big psy' level of 1500 is viable tomorrow. , and there is easy room viable to 1510/20  - as supported by the monthly charts.
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No doubt a retracement will come, but..considering the strength seen right now, even the sp'1440s now look out of range. If we first go to 1520 for instance, then a retracement might be to merely back test the old high of 1474..before a further long summer ahead into the 1600/1700s.

Crazy talk? Well, I can only suggest you again look at the Transports charts, especially the monthly one.

A little more later.