Daily Index Cycle update

The main indexes closed significantly higher, as the uncertainty of a possible QE-taper was removed. The sp'500 soared, +29pts @ 1810. The two leaders - Trans/R2K, settled higher by 1.2% and 1.3% respectively. Near term upside to 1830/50 into year end is expected.


sp'daily5

R2K

Trans

Summary

A choppy first half of the day...followed by a very brief snap to the 50 day MA on the announcement of QE-taper... only to result in a market that was deeply relieved at the removal of this pretty annoying uncertainty.

I sure didn't expect QE-taper today, but I was not at all surprised to see the market snap higher.

The setup was always pretty lousy for the bears, and the daily close is absolutely decisive enough to clarify the direction for the next few weeks.

a little more later...