US equity indexes saw rather important net daily gains, with the sp +33pts (1.7%) @ 2052. The bigger weekly index cycle now has a bullish MACD cross, whilst the giant monthly cycle is flashing an outright bullish green candle, above key resistance of the 10MA. This is no bear market.
With 6 trading days left of October, we're net higher by a rather extreme 132pts (6.9%). The green 'rainbow' candle is highly indicative that the market is not going to see any further significant weakness before year end.
The break above the 10MA (2047) is a further powerful bullish sign.
Equity bulls should be absolutely relieved with recent price action. Even if the market was to cool to the 1950s in Nov/early Dec, it would not do enough to give any credence to a broader bearish outlook.
re: weekly chart. The third consecutive green candle... with a bullish MACD cross. There is nothing bearish there.
Update from a renewed bullish Oscar
Friday will see PMI manu' data.
181pts in 18 days
Effectively, we've climbed almost 10% since the marginally higher low of sp'1871. On any basis, this is a powerful move, and the fact we've surpassed the last FOMC high of 2020, should have long quelled any remaining bearish chatter.
No doubt a few of you out there are still looking for renewed significant downside. I only ask... aren't you looking at the price action lately? Aren't you looking at the resistance levels that are systematically being broken back above?
For now, I am on a no-shorts policy... and with any monthly close above the 10MA, I'll hold to that until the end of next spring.
Goodnight from London