Thursday, 28 March 2013

Daily Index Cycle update

The market opened lower, but almost immediately started to battle back upward. The main six indexes closed mixed, Trans/R2K closed higher, with the Dow/SP closing a touch lower. Near term trend looks moderately to the upside, key target remains the sp'1570s.





Another very frustrating day for those bears who are still shorting the indexes. Although those using super tight stops at the open should have got kicked for at least some degree of profit. Anyway, the market indeed battled higher, and it was once again the usual 'latter day recovery'. Sure we didn't close green on the Dow or Sp'500, but it doesn't matter, does it?

Bears face a major problem across the next few days. Underlying MACD (blue bar histogram) cycle is now starting to tick higher on a number of indexes, and there is a good 2-3 days to the upside viable.

So, in the near term, we could easily be looking at a market that is crawling higher into the middle of next week.

With a long weekend ahead, there seems absolutely no point in launching any index shorts this side of the Easter break.

a little more later