Daily Index Cycle update

A rather quiet start to the week, but once again we saw the Transports and Rus'2000 put in new historic highs. Generally though, the main equity market closed broadly flat. The current accelerated up trend would appear very vulnerable to a near term 3% pull back.


IWM, daily

sp'daily5

Trans

Summary

So..its still kinda dull. The volume is kinda low, and the algo-bots are out there, always capable of melting this market up whilst the bears lack any downside power. With the Bernanke throwing the free money at the primary dealers (most days), the default trend remains UP.

However, a minor retracement STILL seems likely. A move down to sp'1450/40 is still very viable.

The giant gap @ sp'1425 now seems entirely out of range, and it might be some considerable time until we fill that one. Even the sp'1440s will become 'difficult' to hit after this Friday.


Bulls in control

Underlying momentum remains strongly bullish, and even a retracement of 3-4% would do absolutely nothing to dent the massive rally since the June 2012 low of sp'1266 - which is now around 20% lower.

So, lets see if Tuesday sees the VIX back in the 14/15s..and the SP' closing back under the  big 1500.

A little more later