Lets take our regular look at six of the main US indexes
sp'500
The sp' battled an impressive 3% higher this week. The weekly close of 1680 really annoyed those bears still holding on the short side. Call it whatever you want, but the mid-term trend remains strongly to the upside.
Indeed, underlying MACD (blue bar histogram) cycle is set to go positive cycle at the Monday open, and there looks to be an easy 2-4 weeks left in the current up cycle.
For those bears seeking downside in late Aug/September, the lower weekly bollinger is now at 1514..and still inexorably rising. By Sept' it will be in the 1550s.
Nasdaq Comp
The tech sector jumped a very strong 3.5%, and that makes for the third strong up week. With the composite now in the 3600s, the only issue seems to be when...rather than if the 4000s will be hit. Indeed, lets consider the unthinkable...5000s. Not this year, but perhaps in 2015.
Dow
The Dow was somewhat lagging other indexes this week, with a gain of just 2.2%, but still, that made for the third weekly climb. Despite my mid-term bullish outlook, I have to think Dow 16k will be difficult to hit, before the next multi-week down cycle, which could begin within 3-4 weeks.
NYSE Comp
The master index climbed 3.1%, but is still a little below its May high. The 10k level does not look viable in the current up cycle, but certainly...before Santa arrives in December.
R2K
The second market leading index, ramped another 3.1%, and is now comfortably holding above the ultimate psy' level of 1000. R2K in the 1100s will be 'difficult' to hit in the current up wave, but 1200/1300s look easily viable later in the year.
Trans
The old leader managed a 2.3% gain, and is still a touch under the May high. Underlying MACD cycle is set to go positive, but not for another 2-3 weeks. 7000s do not look viable in the current up wave.
Summary
Another strong week for the bulls, and it makes for 120pts higher on the sp'500 in just 14 trading days. At this rate, we'll hit 2000 by late September.
Seriously though, bulls are in absolute control, and despite the stupid 'taper talk', the QE does continue, and the market is holding together very well.
Given another 2-4 weeks of upside, the weekly charts will probably be offering some very clear bearish divergences, and that should offer downside of a 'moderate' degree in late Aug/September. Certainly, the next wave lower should be somewhat stronger than the recent decline from 1687/1560.
Bigger picture is 'hyper-bullish'
Perhaps the most disturbing chart I've ever put together is the following 'hyper-bullish' outlook. I first threw this out there many months ago, and to my own surprise (and disgust) its looking on schedule.
Effectively, a giant hyper-bubble into late 2015/early 2016...somewhere in the sp'2500..perhaps 3000s. Yes, that is absolute crazy talk coming from a self-proclaimed 'permabear', but that IS how I currently see things.
Near term outlook, rallying into Aug/Sept - completing super-hyper 3 of 3 of 3. From here, a moderately strong down wave. Again, I will be looking for a hit of the lower weekly bollinger - as is often the case in multi-week down cycles - which in September will be the 1550s or so.
So, if we max out in early/mid August at 1750, perhaps 200pts down..before a ramp...into Christmas..and spring 2014 - with the sp' somewhere in the low 2000s.
Baring a total end to the QE-pomo program, this market looks set to rally for another two years. I realise that won't please most, but that's how I see it.
Looking ahead
There are a fair few bits and pieces of econ-data this coming week (although nothing on Friday). Retail sales on Monday, CPI Tuesday, Fed beige book Wed', and Phil fed survey/leading indicators on Thursday.
However, more importantly, the week ahead will likely again be 'all about the Bernanke'. The Fed chairman will be testifying to the US house/senate on both Wed/Thursday.
*there is no significant QE until Friday July'19.
sp'60min'3 - near term count
Baring a market upset over China GDP (overnight Sunday), US markets look set to continue higher on Mon/Tuesday. There is no reason why we won't break into the 1700s on the current sub wave. Indeed, if the bulls are going to hit the 1740/60s, I'd want to see at least 1700/10 this week.
Best guess, the market uses the Bernanke as an excuse to sell lower from Wed-Friday, and there is opex of course, which should further be an excuse for 'cooling things down' a bit. At best though, the bears will be lucky to hit the rising hourly 50 SMA - which by opex' Friday will be around 1670/75
*I am on the sidelines, seeking to pick up another set of index/Oil longs, and I intend to hold long into early August.
Back on Monday