Wednesday, 11 May 2016

Daily Index Cycle update

US equity indexes closed broadly higher for a third consecutive day, sp +25pts @ 2084. The two leaders - Trans/R2K, settled higher by 1.2% and 0.9% respectively. Near term outlook is extremely borderline, but clearly.. leaning bullish, as the 2100 threshold is within striking distance.




sp'500: the best day for the sp' since March 11th, breaking the short term downward trend from 2111. Equity bulls just need to break back into the 2100s to open the door to new historic highs this summer.

Dow: settling +222pts (1.3%) at 17928, with the cheerleaders on clown finance TV getting excited about a viable weekly close above the 18K threshold.

Equity bulls just need another 2% or so to break the May'2015 high of 18351.

Meanwhile, equity bears can't really have any confidence until a break under the key 17K threshold.

a little more later...