trans'60min
trans'daily
sp'monthly, rainbow
Summary
With today's strong decline, the transports is again sporting a red candle on the monthly rainbow (elder impulse) style chart. If we can close the month at this level, it would be the most significant bearish signal we've had in the market since May 2011. Yet we still have six trading days left of the month, and a lot can happen between now and then.
There is unquestionably a number of underlying problems in the global economy rearing up again. Last weeks QE3 launch certainly helps to dispel some of the fear in market-land, but QE3 sure ain't going to solve the structural problems out there.
I certainly can't fathom where the market is going this Autumn, but...if September does close with a few red flags - such as trans <5000, and Oil <90, then the bears have a chance to break back under 1400, and challenge the rising 2009/12 trend (sp'1300, as at Oct'1st)
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*I remain short, and with the dow/sp' utterly failing to match the transports action, I am not pleased at all. Friday is quadruple witching, and I'm just not expecting anything much for the bears tomorrow.
I guess there is always next week....sigh.
Goodnight from London