Thursday 9 May 2013

Keeping the bigger picture in mind

Another day of algo-bot melt to the upside. Even the closing hour saw a minor ramp into the close, if only to spite those bears who had shorted the open. Near term trend is somewhat toppy, but the 3-4 month outlook looks very bullish.


Trans, weekly3, rainbow



R2K, weekly


Summary

The Trans and the R2K remain the two leading market indexes, so I thought I'd end the day with them.

Both are clearly in a VERY bullish up trend. There is plenty of upside available in the immediate term. The upper bollinger on the trans offers the low 6500s, that is a good 2%. I don't expect another 2% this week, but certainly Trans looks set to close May in the 6500/6600 zone. That will put it within 10% of the 7200 target by late August.


Looking ahead

We have the weekly jobs data tomorrow, and if that comes in okay, then sp'1640s will be available by late morning. There remains the threat of a very brief 1-2 day down cycle to shake out the weaker bulls, but I sure can't envision breaking <1600 any time soon.

On balance, the 'melting' is likely to continue for  weeks, if not months.

Goodnight from London