If sp'1772 was a short term low, then the bears are in real trouble this Friday..and into early next week.The broader trend remains to the upside, with an end year target of sp'1830/50. Baring a bizarre and ill timed FOMC QE-taper next Wednesday, the market should rally from here.
Did we just see an ABC wave lower? It is always difficult to be certain, until we're a few more days out.
Regardless, it was pleasing to see my target zone of sp'1774/72 hit, and perhaps that was indeed the low for this little sub'4 wave.
The broader trend of course...remains to the upside
BDI - on the rise
As expected, the BDI continues to rise, and is one global economic indicator for the bulls to look forward to in the months ahead.
Targets zone remains 3000/3500 by the spring, with 6000s in late 2015. If that is the case, it bodes extremely bullish for the shipper stocks, including the still lowly DRYS.
There is only producer prices to conclude the week.
*Next sig' QE is next Monday.
An interesting day..and I'll leave it at that.
Goodnight from London