Friday 29 August 2014

Minor churn into end month

US equities continued to see subdued trading conditions ahead of the long holiday weekend. All US indexes are set for powerful net monthly gains, and with bullish engulfing candles all over the place, the outlook for September is for further upside of another 1-3%.


sp'weekly8


sp'monthly


Summary

Barring some bizarre Friday decline of 25/30pts, the weekly 'rainbow' chart is set to conclude the week with a second consecutive green candle.

Far more important though, the monthly charts are set to close with very powerful net monthly gains of 3-5%.


Looking ahead

There is a trio of econ-data to wrap up the week... Pers' income/outlays, Chicago PMI, and consumer sentiment. Those should give the market the excuse it needs to either wash out the weaker bulls in another minor down wave to the 1985/80 zone... or just gap right back into the 2000s.

Regardless of any minor moves tomorrow, net week looks set for new highs, into the sp'2010/20s.

*the next QE schedule will be issued tomorrow afternoon at 3pm.
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Goodnight from London