sp'weekly
sp'monthly
sp'monthly3, rainbow
Transports, monthly2, rainbow
IWM, monthly
Summary
Suffice to say, we have seen the big monthly charts turn clearly upward. All the bearish momentum that began with the mid-September QE highs..is now completely gone.
With both the R2K and the Transports displaying clear breakouts, I've little doubt the SP, Dow, and Nasdaq will be playing catchup into February.
Upside targets?
i will dare suggest that the obvious upside target is a touch of the upper bollinger band, which is currently at sp'1511..and that is rising. By early February, it could easily be around 1520/30.
The doomer bears should of course keep things in perspective. Were the market to max out around 1510 in February, that is only 45pts higher, a mere 3%. Indeed, that sort of increase is easily possible within a 2-3 week time frame.
On the sidelines
Having exited @ 1398 at the Monday open, I'm choosing to sit back..and just watch. A re-short in the low sp'1500s in early February is a very appealing trade idea right now.
First things first though, lets see if the bullish maniacs can melt this market above the psychologically huge 1500 level. It won't be easy, but so long as there is not too much talk about the debt ceiling, the market will very likely manage it.
Goodnight from London
--
*there will be a weekend posting, late Saturday, probably on the world index monthly charts.