sp'monthly
Summary
It is pretty clear... if we don't close tomorrow, with the sp -25pts.. back under 1970...the monthly close will be a pretty damn bullish spike-floor candle.. suggestive of upside into year end.
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Looking ahead
Friday will be pretty busy.. with Fed official Williams speaking in South Africa, although it s very hard to say if any comments might be market related.
In terms of econ-data, pers' income/outlays, employment costs, Chicago PMI, consumer sent.
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*I am short from sp'1981, and will seek to exit into the weekend... although considering today's closing level, even the low 1970s look somewhat difficult to reach.
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Crazy market... what else is new?
Yesterday, I was seeking a micro double top of 1990/91. This morning, the market opens a little weak....and on a minor bounce...I short, the market quickly falls to 1974.. before a rally into the afternoon.
All things seemed 'tolerable', until that headline flashed over the Nikkei wires... yet it was a two week old story. How in the hell could the market seriously ramp on that? Having had some hours to reflect on this afternoon... I still can't make any sense of it.
This market is rarely boring. There is always something of interest going on. Friday will be no different. The key issue is whether bears can achieve a significant daily decline to offer some hope for next month.
I see a fair few people touting the sp'2100s, or at the very least, the 2025/50 zone before year end. I could counter and highlight the weakness in Oil, Copper, precious metals, miners... it could be a very long list. Suffice to say, new equity highs simply do not make sense right now, not least with QE having ended.
Goodnight from London