Friday, 23 October 2015

The bullish green candle

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

Looking ahead

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