Daily Index Cycle update

The main indexes all closed moderately higher, lead by the Transports, with gains of 0.8%. The sp' close of 1658 was another strong reminder of the underlying strength in this QE-fuelled market. Near term trend looks extended, but there is strong rising support, barely 1% lower.


R2K

SP

Trans

Summary

Another trading day that many bears will want to forget. There were a great many out there with ceiling targets in the sp'1640/50 area, and those ALL got taken out today with the brief break into the 1660s.

We are clearly in an accelerating up channel, lead by the transports. Weekly tranny chart suggest the low 7000s, which is a good 10% higher, and that would equate to sp'1800s by late summer.

Trading volume remains light, but since when did that matter? There is big QE-pomo this coming Friday, which also happens to be opex. Bears beware!

A little more later...