Wednesday, 8 May 2013

Daily Index Cycle update

The US indexes all closed higher for a fourth consecutive day. The headline indexes (Dow, SP, Nas) all held gains of around 0.5%. Yet it was the two leaders - Trans and R2K, that lead again, with gains of 1.6 and 0.8% respectively. Near term trend shows no sign of changing.





A pretty straight forward day. No sellers, a 'few' buyers, aided by QE-pomo, and melted higher by the algo- bots.

The scary thing is that this type of price action could last for some weeks, if not 3-4 months - as the transports weekly chart would suggest.

I continue to see some bears taking new short positions, yet this just seems outright crazy considering what was a very important bear failure last Thurs/Friday.

a little more later