Monday 9 September 2013

Closing Brief

The main indexes all closed higher, with the sp +16pts @ 1671. The two market leaders - Trans/R2K, both saw very significant gains of 1.4% and 1.6% respectively. Near term trend remains to the upside, and bulls look set for a second gap fill in the sp'1680/85 zone..either tomorrow or Wednesday.


sp'60min


Summary

For the bears..not least yours truly, the week has started off somewhat annoyingly.

The hourly index/VIX charts were all primed for today, and despite a marginally shaky morning - where the VIX was positive for a while, the market just kept melting higher.

With the break above the 1669 high, it looks pretty straight forward from here..another 0.75/1.0% higher..into the low 1680s.

--
The ultimate question is what happens when we're in the 1680s?

A major reversal?
Or, continued melt into the 1690s....with new index highs on the subsequent FOMC announcement of 'taper only 10/15bn'.

As things are, I'm still short, but more than anything, the bigger weekly charts are starting to look bullish. More on that later.
--

The usual bits and pieces across the evening...