sp'weekly8
R2K, weekly4, rainbow
Summary
So...a sixth consecutive green candle on the weekly 'rainbow' chart for the sp'500. Unquestionably... the trend is outright bullish, with the upper bollinger offering the 1910/15 zone next week.
Even the battered R2K index is showing a turn - via a blue candle, with target upside to around 1170/80. The R2K is offering a possible giant H/S formation, although that scenario will get dropped on any move much above 1200, but that is still around 6% higher.
Suggested reading
As many of you should know by now, I am a major follower of Martin Armstrong. His ECM model is something I am particularly interested in.
See this most recent post - Watershed shift?
The point is, Mr A is seeking a 'phase transition' at some point, with the two following scenarios...
1. Market retraces this summer (10/20%), then a 'hyper-ramp' into late 2015/early 2016 - perhaps as high as Dow 35/40k (yeah....you read that right), then a grand crash into 2020
2. Market battles broadly higher into late 2015/16, but only puts in a moderately higher high...Dow 18/20k, falls for a year or two,, but then sees a phase transition into 2020.
It is a somewhat complex issue to summarise, but broadly speaking - from the 'doomer bear' perspective, equity bears should actually be hoping for a hyper wave into late 2015/16....and then a grand collapse.
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Well, it has been a tiring week...and its time for me to wrap up!
Goodnight from London
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*the weekend post - late Saturday, will be on the US weekly indexes