Thursday, 12 April 2012

The Rainbow Indexes - all set to go Bullish

There is a time for simplicity, no trend channels, no support/ 'target zones'.

The Elder Impulse charts I have to come to make use of only relatively recently.

*the following charts do still have EMAs, I suppose I could have removed those too, but..regardless..lets see where we are across 6 main indexes...

IWM (Rus'2000 small cap), daily

Dow, daily

Transport, daily

SP' daily

NASDAQ, daily

NYSE Comp, daily


The transports was the only index to get a confirmed trend change today, and is now arguably issuing an outright 'No shorts, be LONG' signal.

I would believe its fair to assume, that even if the indexes are flat or a touch lower tomorrow (no more than -0.25/0.35%) that we'll see the other 5 charts also provide a green candle for the Friday close. That would set up for a further move higher next Monday/Tuesday. I'd guess that Wed-Friday might easily be a consolidation phase as we have OPEX next Friday. Whether we fall after opex...well, lets get next week out of the way first.

Keeping it simple

There are endless issues right now, especially on the broader weekly and monthly cycles, but I think its important to have highlighted this simplified view of things. There is a time for oscillators, and all the other chart-indicators, but right now..I think the above 6 charts tell the story that needs to be told.