Thursday 18 July 2013

Daily Index Cycle update

The main indexes all closed moderately higher, with the sp +0.28% @ 1680. The Transports and R2K continue to lead higher, with daily gains of 0.8% and 0.4% respectively. Underlying pressure remains to the upside, and bulls look in control, at least into early August.


sp'daily5


R2K


Trans


Summary

So...another up day for the bulls, and the bears remain utterly powerless. Intra-day declines are never more than 1%, and the market is always able to bounce right back within a day.

Despite the higher close, underlying MACD (blue bar histogram) cycle did tick lower for the second consecutive day. Yet, momentum is still in extremely bullish territory.

With the weekly index charts battling higher...there is no near term downside likely. The earliest 'hope' for the bears is probably in the first half of August.

a little more later...