Thursday, 23 May 2013

Closing Brief

The main indexes recovered most of their opening declines, with the Trans/R2K closing broadly flat. The sp' close of 1650 has no doubt got many of the bulls pleased, but more likely, its merely a wave'2/B bounce, and Friday looks set for considerable declines, perhaps even to sp'1600.



An interesting day to be part of. Certainly, it was always an unknown as to if we'd just gap lower or higher. At least I wasn't long overnight!

We have seen what is arguably a very natural wave'2 bounce, although of course, it was partly inspired/fuelled by a QE of 3-4bn today.

As for tomorrow, it could be pretty memorable for the bears.  There is no significant QE to be concerned of, and the daily price momentum is increasingly swinging in favour of the bears - despite today's bounce.


*I am heavy-short the indexes overnight, via IWM. Seeking an exit in the sp'1630/25 zone by the Friday close.