Wednesday 20 November 2013

Daily Index Cycle update

The main indexes closed somewhat weak, with the sp -3pts @ 1787. The two leaders - Trans/R2K closed -1.0% and -0.5% respectively. Near term outlook is for renewed moderate upside, to the sp'1810/30 zone by early December.


sp'daily5


R2K


Trans


Summary

Primary trend remains unquestionably to the upside.

Equity bears continue to get periodically teased..only for the market to resume higher. With the QE fuel likely to continue for a very considerable time to come (end 2014, according to Fed 'Evans), this situation looks unlikely to change until the late spring at the earliest.

Even then, it might take a good 2-3 months for the market to form a choppy intermediate top - as was the case in summer 2011.

I am in no mood to get involved on the short side of the indexes for another 4-6 months..at the earliest.
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a little more later...