US equities started the week on a particularly bullish note, with the sp' breaking a new cycle high of 2106... making for a monstrous 235pt ramp from the marginally higher low of sp'1871.. a mere 25 trading days ago. New historic highs >2134 still look unlikely before a retrace occurs.
*second consecutive green candle on the monthly 'rainbow' chart, something we've not seen since Dec 2013. Again, its a reminder of just how extreme the Oct' gain was.. and how it arguably negates ALL of the broader bearish outlooks.
Suffice to add, we currently have the sixth consecutive net weekly gain... but by the end of this week, I have to believe we'll be at least moderately red.. somewhere close, or even below the 200dma (2062).
Despite today's positive start to the week, a retrace to the 50dma (2020/10s.. before Nov' opex)... still looks due.
Tuesday will see Factory orders data.... but Mr Market will no doubt be more focused on the monthly jobs data due this Friday.
Goodnight from London