Twenty five months... and counting

The US equity indexes closed October with net monthly gains of around 4%. It has now been over two years since the bears saw any significant downside price action. It would appear likely, there are a further 4-6 months of upside, before some degree of intermediate multi-month down wave.


sp'monthly'6b - hyper-bullish outlook

dow, monthly2, rainbow

Summary

What is there to say? Yet another bullish month, and an especially strong one.

Even the laggy Dow is starting to suggest that the last six trading months are merely a giant bull flag, and the monthly Dow chart is now offering 17500 by late spring.


Looking ahead

The week concludes with vehicle sales and ISM non-manu'' data. However, I don't think the market is going to pay much attention to either of those.

Perhaps more importantly, there is a trio of Fed printing maniacs on the loose tomorrow, whose comments might be enough to spook the market lower into the 1740s..even 30s.

*there is no sig' QE until next Monday.
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So..another month comes to a close. I can only add, I refer anyone out there to go stare at the world equity monthly charts. I will be doing a full update on those this weekend. A further 10/15% upside into spring 2014 looks likely before the current wave concludes.

Goodnight from London