Thursday 17 May 2012

12pm update - Transports index - on the edge

With the disappointing econ-data this morning, the market just can't sustain even a moderate rally. This sure is one weak market. Meanwhile, the VIX is again attempting another break upward.


VIX'60min



Dow'60min



Transports, daily



Summary

I was reading some more bizarre outlooks earlier, targets of mid sp'1400s, even higher across this summer. I find that almost impossible to see as viable considering the bigger macro-economic picture. Even the cheerleading maniacs on clown channel appear to have conceded that there are issues out there right now, not least in the EU.

*The Tranny is imminently due to break the 5000 level... a reminder on the bigger picture...


Transports, monthly (bullish chart)


The big 5000 level is critical, with the 10MA just a little lower. A monthly close under around 4975 would be very strong evidence for very large falls across the summer.
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