The broader market closed largely flat, but the transports were once again particularly weak, and potentially warning of a snap below key support 'if', the ECB disappoints both European and US markets tomorrow.
We remain in what is a clear bull flag on the SP and Dow indexes, yet the Rus'2000 has already broken up and out, whilst the transports has actually close below the key 5k level.
Were the Rus'2000 small cap as weak as the transports, I'd be inclined to be short right now, but until the sp, breaks below sp'1397, its a very unclear situation, and I'll wait for a clear direction.
From a MACD cycle perspective, we are due to go UP for the next 5-7 days, all the way into next Thursdays FOMC decision (where I do NOT expect QE3 to be announced).
So, Thursday is ECB day, lets see what those maniacs decide. Its possible they'll do nothing of course, and yet still cause a market gap up due to some 'we'll do what is necessary' policy statement.
A little more later