Friday 3 May 2013

Weekly charts back to bullish

Once again the bears are unable to string together two consecutive down days. Today's new highs in the SP'500 and the Nasdaq were again a clear sign that 'normal service' has resumed, and baring a weekly close in the low sp'1580s, the weekly charts are back to outright bullish.


sp'weekly



sp'weekly2, rainbow


Summary

Obviously, today was a real disappointment. I had expected some kind of bear flag to play out across the day, but the market just kept on pushing higher, negating any hope of that idea playing out.

The original target of sp'1480/70s still stands, but that just looks increasingly difficult to hit. Baring a sharp fall tomorrow (at least 2%), on what I think might be another poor jobs number, the market looks set to just melt upward.

A weekly close in the sp'1600s would make for another lousy weekly close for the remaining bears out there.


Looking ahead

Friday will see the big monthly jobs number, but after today's renewed strength, I am almost resigned to the market still rallying, whether good or bad data. After all, if its a bad number, then not only will QE continue, but then the chatter will turn to talk of 'increased monthly purchases' at the next FOMC of June'19.

What is clear, the Feds QE program has destroyed ALL 'price discovery' in what remains a rather sick, nasty, and twisted equity (and commodity) market. When it all implodes, as it inevitably shall, I can only hope the Chairman is there to clean up the mess.

That's all for today...

Goodnight from London