The Bernanke 'reversal day' high of sp'1687 of May'22, is now looking a long way up. With the market breaking to 1577 this morning, the monthly charts are increasingly showing initial signs of a rollover. First downside target is the (still rising) 10MA, currently @ sp'1509.
sp'monthly3b - things the doomer bears need
Well, its been a good week. I thought I would end the week with a single monthly 'rainbow' chart.
We currently have a blue candle, with the MACD (green bar histogram) starting to tick lower. Certainly, its nothing for the bears to get overly excited about yet, but its the first moderate sign of weakness that we've seen since last December.
Weekly charts are also supportive of a sp'1510 hit...viable within the next two weeks.
If we close next week in the low 1500s, then we might actually get our first red candle since Sept'2011, and that would really be something the bears sorely need :)
Goodnight from London
*next main posting, late Saturday, on the US weekly index cycles.