Friday, 6 June 2014

Daily Index Cycle update

US equity indexes closed higher, sp +12pts @ 1940 (new historic high - 1941). The two leaders - Trans/R2K, settled higher by 0.8% and 2.0% respectively. There is near term upside to the 1945/55 zone, but a minor retrace seems likely from there.





So..a touch of minor chop in the morning, but with gains building across much of the day.  Certainly, equity bears continue to be ground into dust.

The fact we had $2-3bn of QE fuel no doubt helped 'inspire' the rally to a large extent.

*I remain on the sidelines, and considering the broader weekly/monthly cycles, I can't get overly bearish until at least the next FOMC of June'18. Perhaps we'll see a wave lower from there, but that itself might only be a few percent, which in my view is hardly worth attempting to trade.

a little more later...