Saturday, 20 December 2014

Bull maniacs in total control

US equities have seen an incredible ramp from the Tuesday close of sp'1972, to settle with a net weekly gain of  68pts (3.4%) @ 2070. The sp'2100s are an easy target, the only issue is when the next 'minor retrace' will occur in late Jan/Feb... at best... 3-4%, with broader upside to the 2300s by April/May.

sp'weekly7, rainbow


A powerful outright bullish green candle for the sp'500... and there is no doubt we have a solid floor of sp'1972.

It is very reasonable to expect the 2300s by late spring 2015.

However, considering Oil.. which is due for a massive $17/22 rally into the $70s... it could certainly help inspire the market to accelerate the trend.

China continues to soar

The Shanghai Comp' is now higher for the eighth consecutive month, by an extremely powerful 15.9% this month...

... headed for next key resistance of 3500 - the high from summer 2009. Any monthly closes in the 3600s, should clarify that 5k will be hit.. whether late 2015 or early 2016. At present, I find the notion of new historic highs (>6124) difficult.

Have a good weekend....

Goodnight from London

*the weekend post will be on the US weekly indexes