Daily Index Cycle update

The broader market showed gains for a third day, although the Dow and Nasdaq lagged due to IBM and INTC. We are still yet to break the QE spike highs of mid September, but we are likely within a single strong trading day of making such new highs.


IWM

Sp'daily5

Trans

Summary

Lets start with the tranny, which has closed above the 200 day MA for the first time in around a month. Bulls should seek a weekly closing high >5250 next week. That is certainly well within range, and the current trend supports it.

The SP' closed within around 1% of the 1474 high, it sure won't take much to break new highs.

I will note again, the break last week of the June rising support (across all indexes) IS an important issue to keep in mind, but that can be entirely thrown out as irrelevant, if we break sp'>1474 in the coming days.

The bulls are clearly back in control, and with opex on Friday, we are very likely to maintain the weekly gains so far, and merely trade sideways.

A little more later.