Daily Index Cycle update

The main indexes opened a touch lower, but with Durable goods orders coming in better than expected, the Transports exploded higher, and everything else followed. It is now looking like the pull back may be complete, in which case we'll see sp>1530 within the next few days.


Dow

SP'daily5

Trans

Summary

The action in the transports was the real surprise of the day. It (briefly) broke back into the 6000s, and the daily gain of 2.9% is only matched by the yearly opening jump on Jan'2.

Dow is now around 100pts shy of its (adjusted) Oct'2007 high of 14178.
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The underlying MACD (blue bar histogram) cycle on the daily charts ticked higher. Today is quite possibly day'1 of this new cycle, and we could easily crawl higher for the next week or two.

So..unless we see a rather muted/flat open tomorrow, with a red reversal candle on the VIX hourly chart, and opening weakness in equities / or a failed opening rally... we're going higher into mid-March.

With things now tricky from a bearish perspective, I am content to sit on the sidelines.

I'll detail my overview, and plan for tomorrow, in the final posting of the day...a little later.