Tuesday, 1 October 2013

10am update - daily trends close to turning

Despite part of the US Govt' shutdown, the main indexes are seeing a slight rally. Much more importantly though, the underlying momentum is starting to turn back to the bulls, with the Trans/R2K leading the way. Precious metals are seeing rather severe drops, with Gold -$31. Oil is -0.6%.


sp'daily5


vix'daily3


Summary

Without getting too focused on the smaller cycles, I think an update on the daily charts is useful to start the day.

First..the VIX black candle of yesterday is being confirmed..and VIX has already broken into the 15s.
Second, the sp' is starting to break the down trend/channel.
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The big question I am wondering is whether the next wave higher can take out 1729..or put in a key 'marginally lower high'..before 'debt ceiling trouble'.

Despite what a few of you may think, I am keep all scenarios in mind, not least the importance of the debt ceiling. I just happen to think things will play out as they have for the past few years.


10.24am...it'd be ironic if the market soars into the 1700s on a day when Govt' partly shut.

10.27am...and there is the BREAK higher. 

Oh well, as ever...it remains a nasty market.



Bears on the run now!
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10.36am.. BIG event just occurred... weekly charts just flipped to outright bullish on the rainbow charts!

Bulls seizing control.