sp'weekly8
sp'weekly4 - hyper-bullish outlook
Summary
It is actually kinda amusing to see how few people are talking about a 'straight up ramp' into Christmas and indeed..all the way into next spring. Just reflect upon how twitchy everyone was - not least the cheerleaders on clown finance TV, a mere 3 months ago - when the sp' was flooring at 1560. We're now 162pts above that level..that is a very impressive 10%.
I just can't quite fathom why the mainstream is not more confident of a continued rally. After all, the Fed have just made it clear once again, the printing continues at $85bn a month, and that should be enough to nullify any 'selling into the continued rally'. Coming from me, I realise its ironic, but the sp'2000s look very viable by next spring.
Strong monthly gains for the 'old leader'
The transports is +7.6% so far this month, and there are still seven trading days left of the month!
Trans, monthly3 - hyper-bullish count
The above scenario is just an idea I am keeping in mind. Effectively, it is part of the 'hyper bullish' outlook, and assumes no market scares until at least the end of next spring. With the break into the 6700s, I think the 7000s are now a given. The only issue is whether 8000s are viable before the next major multi-month drop.
Looking ahead
There is no econ-data tomorrow. Neither is there any significant QE.
*It is however, Quad-witching/opex, so price action could be rather choppy.
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I remain on the sidelines, but will consider an index-long tomorrow in the sp'1714/12 zone, if the price action looks okay. With the weekly charts as they are, I think its plain crazy for anyone to be shorting the market right now.
Goodnight from London