Monday, 2 July 2012

12pm update - eyes on the weekly

Whilst the market trundles sideways for probably the next few days, I might as well take a look at the weekly index cycles...

sp', weekly, 2yr

Dow, weekly


All indexes have the same bear flag formation. So long as we don't break new highs sp>1422, bears can still tout a wave'1 down..then wave'2..and awaiting a 3.

Arguably, bears need to see sp'1305 to confirm the original bearish outlook, that looks highly unlikely this week, not least if we start crawling higher again.

At least for the big money bears, stop levels are clear - loose 1423, tight..1390/1400, day-traders 1360/65

Time for lunch!