Bigger cycles offering further gains

It will be tough to break into the sp'1820s this week, but the bigger weekly/monthly index cycles are both offering the 1840s by year end. Equity bears remain almost entirely powerless, and whether QE is $85bn or $70bn by next spring, there will remain significant underlying upward pressure.


sp'weekly8 - mid term bullish outlook

sp'monthly3, rainbow

Summary

A quiet start to the week, and equity bulls should be more than content with today's price action. We have some rather clear bull flags on the hourly index charts, and with general upside pressure (as ever), there seems little reason why we won't close this week at least somewhat higher.


Looking ahead

There really isn't anything of significance due tomorrow, just wholesale trade data at 10am, but I don't think the market will give that much attention.

*next sig' QE-pomo is not until Thursday.
-


ABC - due to be trashed

Trying to count the micro 60/15min cycles is always difficult, and whether or not there is even a C wave lower this week is largely inconsequential. The bigger picture remains starkly bullish, and without getting lost in the nonsense taper-on/off talk, I would be very surprised if we don't break into the 1900s before the next multi-month top is formed.

A quiet day indeed, and I'll leave it at that.

Goodnight from London