Wednesday, 17 September 2014

Rough day for the bears

Despite equity indexes closing with just moderate gains, with the break of the short term down trend, it was a particularly disappointing day for the equity bears. The fact the Dow broke a new historic high of 17167 only added to the dismay.

Dow, weekly



Without question, the new historic high in the Dow is a real warning to the equity bears that the rest of the market will likely follow in the days ahead.

The current weekly candle on the sp'500 'rainbow' chart remains blue, but another day higher.. and it will likely turn green. That would bode for a straight run to the 2030s by end month.

Looking ahead

Wednesday will be mostly about the FOMC, although I sure don't expect any surprises there. Market is expecting QE-taper 7, taking the monthly QE fuel down to $15bn as of Oct'1st. There will be a press conf' with Yellen around 2.30pm.

There is also CPI, housing, and current account data.

*next sig' QE is Thursday, but that will be a mere $0.3bn or so.

Goodnight from London