Despite a major drop on Monday of sp -40pts, and a lower low early Wednesday of sp'1737, the US market rallied hard to close the week in the upper 1790s, a very significant recovery-swing of 3.4%. Across the week, the sp'500 and the Dow saw net weekly gains of 0.8% and 0.6% respectively.
*I should note that the two market leaders - Trans/R2K, both closed with net weekly declines, but the Trans' did flip from a red to a blue candle on the weekly 'rainbow' charts...
For many out there, it has been a real long and tough week. The bull maniacs did get a real scare on Monday, not least with the VIX breaking into the 20s - the first time since last October.
Even more bearish was the break of the weekly trend - from Nov'2012, on the R2K, but this was not backed up by the Transports, or any of the other major indexes.
As it is, equity bulls look to be in control again. All that is missing, is a re-take of the 50 day MA, currently around sp'1809, barely 0.5% higher.
Goodnight from London
*the weekend post will be on the US monthly indexes