Friday 10 October 2014

The bigger cycles remain key

Whilst many market watchers get lost in the minor intraday, or day to day noise, there is infinitely better clarity in the bigger weekly/monthly cycles. At no point this week did the weekly cycles turn bullish (even at the Monday sp'1977 high).


sp'weekly7a - H/S scenario



R2K, monthly3 - fib levels


Summary

We continue to hold the second red candle on the weekly 'rainbow' chart, and look headed for a hit of the important lower weekly bollinger.

Yes... the H/S scenario is just one way things could pan out.. .but still.. its a personal favourite

As for the R2K... it is completely broken.. headed for 1000.. if not the low 900s.
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Looking ahead

Import/export prices, and US Treasury budget, but who cares about those?

There are 4 fed officials due to speak... and perhaps that will cause more upset for Mr Market.

*next QE is Tuesday
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Goodnight from London