Daily Index Cycle update

The broader market opened mixed, and even broke briefly lower to sp'1427, but as the day progressed the bears got squeezed out, and some chasing buyers doubtless came in. The closing hour was particularly strong for the bulls, and the Tuesday open looks likely to continue higher.


IWM, daily

Dow

SP'daily5

Summary

A very disappointing start to the third week of October (yes, we've halfway through the month already!). With the close of sp'1440 -and the VIX in the lowly 15s, its not looking good in bear land.

I realise we could merely be putting in what might be a perfect back test of the recently broken rising support, but if we break above, and close in the 1450s, it might be signifying its 'game over' for the bears this year.

Tuesday will be important, and right now, it sure isn't looking good. If the bulls can gap straight into the 1450s (good earnings news?), then its probably time for the autumn bears to wave the white flag, go to the cave, and come back in spring 2013.

If I sound despondent..its because I am.

A little more later