sp'weekly
sp'weekly2, rainbow
Summary
So, can we close the week at least moderately red? Hourly index charts did rollover in the closing hour today, and the daily charts are still in a bearish state, yet, the damn Fed is going to be throwing 5-6bn of QE at the market tomorrow.
Primary weekly trend is unquestionably still bullish, but perhaps the 1687 'Bernanke reversal day' is at least a mid-term high. Obvious downside target is the lower bollinger band, which is currently 1459, but still broadly rising.
Many out there seem to be seeking the sp'1550s or so, and I can kinda understand that, but it will be exceptionally difficult whilst QE continues.
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Final chart to end the trading day...
Nikkei, monthly, 20yr
As noted last night, I was looking for the candle to turn red, and indeed we now have an extremely bearish spiky candle, with just one trading day of the month left. First downside target is 12k, which is a good 10% lower!
Looking ahead
There is the QE tomorrow at 10am of course, but there is also some econ-data. Most notable is the Chicago PMI number at 9.45am. Market is looking for 50, equity bears should be seeking anything <49.
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*I am heavy short the indexes, but seeking an early morning Friday exit
Goodnight from London