US equities achieved another pair of new historic highs - sp'1989, Trans'8515. The sp'2000s look due next week. There looks to be reasonable upside to the sp'2050/75 zone by late September.
So.. another pair of new highs for the Transports and sp'500, and unquestionably, it should mute anyone talking about 'significant downside in the near term'
Yes, we still have a blue candle on the weekly 'rainbow' chart, but with new highs... no one should be bearish right now. Price action remains broadly strong, and this is reflected in the VIX, which is crushed in the 11s.
Thursday will see jobless claims, PMI manu', and new home sales data. Overall... not much of significance. Mr Market will be free to dwell on continuing earnings reports.
*there is sig' QE-pomo of around $3bn... bears beware!
I remain moderately long the market, via the R2K index. I'm seeking an initial exit in the 1170s by late Friday afternoon (I'd go long again on any minor Monday down wave). That doesn't seem overly bold a target, with the 1200s very viable in early August.
Goodnight from London