Thursday 23 October 2014

An exciting setup for the bears

Regardless of any near term retrace to the sp'1910/00 zone, market looks set for 1950/60s next week... coinciding with the next FOMC, when QE3 is set to be officially concluded. Frankly, the setup for November, is near perfect for the equity doomer bears.


sp'weekly7


sp'weekly9


Summary

A bounce was expected.. and we've already seen a huge move from 1820 to 1949.

My 'last line' remains around 1970... I certainly don't want to see any sustained price action above there.. otherwise the bigger monthly cycles will start turning back upward.
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Looking ahead

We have a fair few bits of econ-data, jobless claims, PMI manu', and leading indicators.

*there is QE of around $1.5bn.... the penultimate QE-pomo day.... :)
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Goodnight from London