Daily Index Cycle update

With a fiscal cliff deal passed in the US house, the indexes opened sharply higher, and saw a particularly strong closing hour. Most indexes closed with gains of around 2.5%. Most notable aspect of the day..the Rus'2000 small cap'...at ALL time highs. Incredible.


IWM

Dow

Sp'daily5

Trans

Summary

Today certainly counts as confirmation of the turn to the upside we saw occur during Monday morning.

The most bullish aspect of all is unquestionably the new all time high seen in the Rus'2000, with the Transports putting in a similarly important close in the 5400s.
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The Sp' and Dow are still lagging a little behind, and bulls should be seeking >sp'1474, and Dow 13700s sometime 'soon'.

Doomer bears have a very simple objective level now..<sp'1398. Until we see that level broken, the bigger picture is now very much on the bullish side.

Quite frankly...a break <1398 looks....really difficult..but hey..we have a long year ahead of us.

A little more later.