The mid-term up trend resumes

The Dow breaking the 200 day MA - along with the first lower low (for a main index) since Oct'2011, was a particularly cruel tease to the equity bears. It would seem the US markets are set to continue to rally for at least another 2-3 weeks. Prime upside target zone is sp'1740/60.


sp'weekly

sp'monthly

Summary

A long..and tough week for many..so I'll keep this closing post short.

The closing weekly candle is especially bullish, a classic spike-floor, on rising support (for most indexes), and it does bode for another few weeks higher, which should be enough to break new index highs.

The bigger monthly chart is similarly outright bullish, and as noted, I do expect new historic highs within the near term of late Oct/early Nov'. It is something to keep in mind, that the rising monthly 10MA will be offering first key support around sp'1625 in November - which is of course near the important August low of 1627.

So, for the more conservative bear traders out there, a 'chase it lower, if break <1627' is arguably a very sound trading rule.
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Goodnight from London