sp'weekly8b
Summary
Yesterday morning saw the weekly 'rainbow' candle flip from red to blue... but we're currently back to red.
Equity bulls should be seeking a weekly close in the 1940s, that will provide a blue candle for this week, and offer upside to the 2000s in September.
Just consider that the upper bollinger on the weekly cycle is offering the 2010s in the immediate term. This 'best bull case' target is supported by both the daily and monthly cycles. Equity bears need to be VERY mindful that this market could just keep on climbing straight into the 2000s.
Looking ahead
Wednesday will see retail sales and business inventories. Also notable, two fed officials on the loose.
*next sig' QE is Thursday
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Tedious Tuesday, a more dynamic Wednesday?
So.. today was not exactly exciting, but then...it is the sleepy month of August. Things really won't get going until after Labor Day (Sept'1st).
I'm a little bit edgy about holding long into Thursday, when we have the German GDP data. DAX is hanging around the 9k level, and if the data is bad..there is the threat of prices breaking lower.
DAX, monthly, 20yr
As I've been noting for many months, 8k would be the natural downside target - an effective back test of the double top from 2000/2007.
So.. lets see if the market can manage to claw higher by at least 0.8% by late Wednesday..into those 1950s. There are multiple aspects of resistance in the 1950/60s... it sure won't be easy to break into the 1970s.
Goodnight from London