Friday 6 December 2013

1pm update - text book back test

Of all the indexes, the Dow is offering the clearest picture of what is currently going on. We have a classic text book example of a back test of old resistance...which is now support. With the monthly chart offering Dow 16500 before year end..equity bears are understandably dismayed at the current gains.


Dow' daily


Sp'weekly'8


Summary

I'm trying to refrain from getting 'lost in the minor noise'..so I'll keep to daily/weekly charts for a bit this afternoon.
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So..Dow 16000 looks set to be hit in the next hour. I don't think its important for a close there..but for the hyper-bulls..that would be the target..along with SP >1806.


The weekly 'rainbow' sp' chart is offering the same kind of price action that we saw from Feb-April of this year. Endless little teases to the bears..but always bouncing right back.

As ever...it remains a nasty market.

*ohh..and bears holding short across the weekend..be mindful...there is HEAVY QE-pomo next Monday of around $4-5bn.

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12.59pm..and there is Dow 16000.