Daily Index Cycle update

The main market closed moderately higher. The opening gap over the recent sp'1423 high was very damaging to all near term bearish outlooks. Despite late day weakness, the closing gains are yet more salt in the wounds of those bears who have been re-shorting across the past few weeks.


IWM

Dow

Sp'daily5

Trans

Summary

Clearly, it was a rough day in the bear bunker. The opening gap right over the sp'1423 high (from last Monday) was always a threat, and once that occurred, then the algo-bots were merely able to melt everything higher into the mid 1430s.

Lets get this clear, there is NO sign of a turn lower, or even levelling out yet.

The hourly charts held within their ascending channels, and thus no one - not least yours truly, can claim the immediate trend is anything other than UP.
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The FOMC announcement is tomorrow at 12.30pm, with the Bernanke due to hold a press conference around 2.15pm. How the market reacts to both of these, will very likely shape how we trade into early 2013.

A little more later