Tuesday, 17 July 2012

Daily Index Cycle update

A choppy Monday, yet the indexes are still broadly climbing since the low of sp'1325 last Thursday. Whether we put in a new high >1374, or rollover before then, is very hard to say right now.

Regardless, such higher prices should be seen as a bonus by the big money bears out there. A rollover and significant wave lower are due to start within the next week or so.

IWM, daily

SP, daily



These are all minor moves in the scheme of things. We did indeed close off the lows of the day, so maybe that is a little sign of the underlying up trend that we're still in.

How will Tuesday pan out? I'd guess even if we see a move lower to 1345/40, the bears would still be wise to wait until Wed/Thursday.

If we're around 1360/65.and getting stuck on Wednesday, I'd be very likely to re-short then.

A little more later.