US equity indexes closed moderately higher, sp +8pts @ 2270. The two leaders - Trans/R2K, settled higher by 0.8% and 0.9% respectively. VIX settled -2.2% @ 11.45. Near term outlook still threatens a relatively small retrace to the 2243/31 zone. Broadly though, the market remains super strong.
It was just another day for the equity bulls, as the Dow and Nasdaq comp' both broke new historic highs of 19987 and 5489 respectively.
Underlying price momentum remains net positive. Equity bears need to break the rising daily 10MA - currently @ 2258, just to offer any hope of a mini washout to the 2240/30s. Frankly, anything <2200 looks unlikely for a very considerable time.
Strength: WTIC oil, weekly
A net daily gain of $0.24 (0.4%) to $53.30. Seen on the bigger weekly cycle, we're now seeing sustained price action above the key $50 thershold. Further mid term upside to at least $60 seems highly probable. Keep in mind, an inverse H/S formation - as also seen in many energy stocks, was suggestive of 70/75 by next summer. If that is the case, its difficult not to see the sp'2400/500s.
Goodnight from London