Wednesday, 22 May 2013

Daily Index Cycle update

The main indexes closed a little higher, but there was some distinct weakness in the closing hour. The sp'500 managed almost another 3pts higher, to settle @ 1669 - after an earlier high of 1674. Near term is still within an accelerated upward channel...but its looking tired.



Suffice to say, things are looking 'tired' as we are approaching a 3 day (next Monday is closed for Memorial day) holiday weekend.

Underlying MACD (blue bar histogram) cycle actually ticked lower for a second consecutive day, although we're still very high in positive territory. Its going to take a break of the channel to have any chance of just going negative cycle.

Right now, the very best bearish case is for sp'1640/35 by the Friday close, but frankly, I find that hard to envision.

We have another mid-sized POMO on Thursday. Which direction do you think the market will be going then?

a little more later...