Daily Index Cycle update

The main indexes closed the week on a moderately positive note, with the sp +11pts to 1690. The near term trend remains slightly to the downside, but bears are still lacking any consistent and significant downside power. Bulls merely need a break into the 1700s to re-take this market.


sp'daily5

Dow

Trans

Summary

For the bears, this remains a deeply frustrating, and almost entirely pointless market to try to short. The down cycles are still weak, and the mid-term trend - since Oct'2011, remains strongly to the upside.

In terms of the Dow', equity bears need to break below 14760 to put in the first lower low since Oct'2011. Frankly, that looks a tough task for next week.

What is clear, once the debt ceiling issue is resolved - as it will be, this market will likely soar to new historic highs. Even worse though, there remains the real risk of a very strong ramp..all the way into next spring.

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a little more later...