sp, monthly, rainbow
trans, monthly, rainbow
Summary
With today being the lowest volume of the year - yes, even worse than what we saw in the tedious August, we're back to long days of nothing.
In terms of price action, we are indeed just continuing to cruise steadily higher. At the current rate of up trend - all else being unchanged, we'll close the year somewhere between sp'1550/1600. Of course, there is a lot of stuff to occur between now and then, but still, the trend is unquestionably UP.
What is especially concerning right now is seeing the tranports having flipped back to a green candle. Although we saw it happen in both August and September, only to close both months red. The doomer bears should be seeking an October close in the transports <4750.
The 10 MA
I often focus on the importance of the 10MA, I realise others would favour something else, maybe the 13/39 crossover for instance, but I'm more inclined to keep it simple.
Until we see a monthly closing below the 10MA of sp'1383, bears are fighting what remains a very strong up cycle - that started in Oct'2011 @ 1074.
I can only hope, Tuesday will be more dynamic than today.
Goodnight from London