Wednesday, 8 May 2013

Call me when we get a red candle

It still looks like last weeks bear failure was a key moment. The market now reeks of relentless slow motion algo-bot melt. This could last for weeks, if not a very viable 3-4 months, with Trans 7000s, and SP'1800s. Until we see a closing red monthly candle, bears have nothing to tout.

sp'monthly3, rainbow


It remains the most remarkable fact that its been 20 months since the last closing red candle on the rainbow 'elder impulse' monthly charts.

Even the decline of last summer was not enough to merit a red candle. Instead, bears have merely been teased, over and over.

Personally, I'm more than tired of it. Until I see 2-4 blue candles..and then a red candle, this market is clearly still 100% bullish.

One other thing to note is the monthly 10MA, currently @ 1490, but rising fast. We didn't even come remotely close to breaking that in April, and now we're 135pts above it! Incredible.

That's all for today, I will be around for all of tomorrow.

Goodnight from London