Another week to wait

The main US equity indexes continue to melt higher. There is simply no sign of the near term bullish trend ending. However, from a cycle perspective, we're arguably 'likely' to see a turn to the downside beginning next week. The only issue is how low do we go?


sp'daily7 - fib levels

sp'weekly2, rainbow

Summary

It does look like we have another quiet trading week ahead. There is no 'major' econ-data due,

I have to believe bears are going to have to wait at least until next week, after this Fridays opex. Bears should also - as ever, keep in mind the next big POMO days, which are this Thursday and Friday.

So, I won't be meddling in any index shorts - or VIX long, until at least next week. There just doesn't seem to be any point.


How low in the next cycle?

I think bears will at least see the sp'1470s - that's a good 80/90pts lower. However, I just can't see anything <1425/00 under any scenario.

Indeed, after any correction, I'm concerned that we'll see a renewed melt higher across the summer, into the sp'1700s..even 1800s.
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*In the meantime, I hold long overnight, via SLV and USO, both look okay for further upside for at least 3-5 days.

Goodnight from London