sp'weekly7
Summary
So, a bit of a mixed day for the market, with significant gains for the Trans/R2K, but new cycle lows for the Dow/SP'500.
Most notable, the VIX did NOT confirm the new cycle lows, and thus we have a key discrepancy to be mindful of.
As things are, we continue to hold the third consecutive red candle on the weekly 'rainbow' cycle. Primary upside on a bounce would be the weekly 10MA... somewhere in the 1950/60 zone... that is very viable within 2-3 weeks.
WTIC Oil, headed much lower
The monthly 'rainbow' candle is an absolutely clear outright bearish red candle. Outlook is for further declines into early 2015.
The only issue is whether we get stuck around $70, $60, or a brief foray into the $50s. Regardless, lower energy prices are bullish for the broader economy, and will most certainly help growth prospects across Q4 and the first half of 2015.
Looking ahead
We have a quartet of data, PPI, retail sales, empire state manu', and business inventories.
There is also the latest Fed beige book at 2pm. No doubt Mr Market will be desperately looking for any signs that economic growth is continuing.
*there is QE of around $1bn
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Goodnight from London