Saturday, 6 August 2016

Ending the week positive

US equity indexes closed broadly higher, sp +18pts @ 2182. The two leaders - Trans/R2K, settled higher by 1.9% and 1.4% respectively. VIX settled -8.3% @ 11.39. Mid term outlook is bullish into mid/late September.




The week ended on a very positive note, with a new historic high for the sp'500.

The Nasdaq comp' came within 4pts (0.1%) of the July 2015 high of 5231, and looks due a new historic high next week.

There is simply nothing bearish in the US - or most world markets, and its laughable how the market didn't even retrace to the sp'2130s this week, and instead made a spike floor from 2147.

notable strength, UK - FTSE

The giant multi-decade resistance threshold of 7K is set to be challenged later this month. Any monthly close >7K, would bode for broader upside to at least 9/10k.

If you believe the next bear market will also be on the order of 50%, then a basic upside target of 14/15k is necessary... in order to back test the 7K threshold. On that scary thought...

Goodnight from London

*the weekend post will appear Sat' 12pm EST, and will detail the US monthly indexes