Daily Index Cycle update

The main indexes generally closed higher, with the sp +5pts @ 1689. The Dow closed +135pts (0.9%). The anomaly was the R2K, closing fractionally lower. Near term trend remains to the upside, and the sp'1700s look viable within the next few days.


sp'daily5

Dow

R2K

Trans

Summary

For the bulls, today's closing minutes typified what has happened since the sp'1627 low...a mere ten trading days ago.

For the bears...I think its now time to wave the white flag of surrender. The current 10 day rally looks too strong to be a simple wave B/2. Instead, this looks to be something much more significant..and new index highs...look likely.

I can't see any likelihood of equity weakness until at least next Wednesday, and even then, why would the market fall on QE-taper of 10/15bn (if any) ? QE of $70bn a month, is still a very large amount, and should be enough to prop this market up into next spring.

Bears had their chance to hold the bounce in the past few days...and have clearly failed.
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*I am on the sidelines, and will be looking to go long-indexes, on any intra-day pull back early tomorrow.

a little more later..