Saturday, 28 September 2013

Daily Index Cycle update

The main indexes closed moderately weak, with the sp -7pts @ 1691. The two leaders - Trans/R2K, slipped -0.6% and -0.4% respectively. Near term remains weak, but the recent seven trading days could easily be a bull flag, with target upside in October to the 1750/75 zone.





The market closed the week in a relatively quiet state, despite a closing hour appearance by the US President. The market is obviously looking for a resolution to the potential Govt. shutdown.

The primary trends remain to the upside, and based on the past few years of trading action, I have to assume the market will simply break back upward to the upside some time next week.

Lets be clear, the bears have seen the sp' decline for 6 of the last 7 trading days, and that has only achieved a decline from 1729 to 1691...a mere 2.3% or so.

That is simply not good enough, and once the bulls do manage to turn the market back upward, they'll be more than capable of breaking new index highs.

a little more wrap up the week