The broader trend remains to the upside

Across the week, the sp'500 fell -1.65%, which was the biggest decline since late August. Despite the last few weeks of choppy weakness, the broader trend remains strongly to the upside. Baring a policy change by the Fed, the market looks set to close the year in the sp'1830/50 zone.


sp'weekly'8 - bullish outlook

Summary

No doubt there will be a lot of bearish posts across the net this weekend.

I can only suggest everyone take a few minutes to just stare at the above chart.

We now have 3 consecutive blue candles on the rainbow chart. As I like to think of them, the blues are often warnings of trouble...but in this QE-fuelled market..such warnings are usually just a tease to the bears. Across this year we've seen a fair few weekly declines..but the market has always quickly recovered.

Baring a change in Fed policy next week, I'd have to assume the market will climb into year end.

Goodnight from London
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*next main post, late Saturday, on the US weekly indexes