Friday 25 January 2013

Daily Index Cycle update

Another day higher for the broader market, lead once again with further historic highs for the Transports and the Rus'2000. The Nasdaq was weighed down by the 12% decline in AAPL. With the sp'500 breaking the psy' level of 1500, the bulls continue to show their mighty strength.


Nasdaq Comp



Dow



SP'daily5



Trans


Summary

So, yet another day where the Transports ramped 'to da moon', with the Rus'2000 closely following. With the sp' hitting the big 1500 level, it has to be said, this is one hell of a bullish way to start the year.

With this kind of opening, how can anyone now be bearish about the rest of 2013?

Sure, moderate, even a single major pull back (to the 1300/1250s) is still viable, but the primary trend is now extremely bullish.

Anyone with doubts should merely stare at the monthly charts of the Transports and Rus'2000 indexes for an hour or two.


What about the earlier weakness?

A fair few (myself included) were getting somewhat curious about the weakness seen in the early afternoon, but really, it was minor, and the main indexes still closed largely higher. Even the VIX showed a failed breakout, losing 6% of its earlier 8% gains.

Without question, today was just another day of failure for the bears. There really is no reason to expect tomorrow to be any different.

A little more later