IWM
SP'daily5
Trans
Summary
So..we didn't get a third giant up day, but neither have we seen any significant reversal.
It looks like sp'1398 was indeed a key floor, and that we're going surpass sp'1474 within the next week or two.
This outlook is especially supported by the R2K - which once again hit a new historic high today, and the Transports which still managed to close 0.6% higher. The earlier break into the 5500s was certainly important to recognise.
Underlying momentum - see MACD (blue bar histogram) is still ticking higher, and even if prices are flat for the next few days, the cycle still won't be rolling over.
Bears can't be re-shorting this market.
What is clear, the only 'safe' (if there is such a thing) short trade right now, is with a short position being taken, if the market breaks below the 1398 low. Until we break that low, bears are shorting into what is a very strong multi-month rally..from the 1343 level.
A little more later