Primary trend remains UP

With the indexes rebounding back to fully negate Mondays declines, the bigger trends once again have to recognised for what they are saying. With the transports leading the way - since mid-December, the main indexes are all battling higher, with absolutely no sign that the trend is ending any time soon.


Transports, monthly, rainbow

Sp'500, monthly, rainbow

Summary

I like the rainbow (Elder Impulse candle style) charts, they are often more clarifying about the trends than standard charts. What is particularly notable is the lack of any red candles. 2012 was remarkable for the lack of any decent multi-month downside, and its been around 18mths since the last red candle of Sept'2011.

It is without question that the Transports IS leading the way, and the sp'500 is following, with the Dow..and Nasdaq also battling to keep up.

With the fed throwing 45bn at the primary (t-bond) dealers each month, there is now a permanent bid under this market. The added issue that the HFT algo-bots are still plugged in, causing the statistical melt-up, is the cherry on the top of this mountainous bullish cake of hysteria.

Goodnight from London