Whilst the main market broke yet another set of new historic highs, the looming breakout in the R2K is without question far more important. Once the R2K puts in a decisive monthly close in the 1220s.. or higher, it will signal a massive warning of much higher levels.
So far then.. the R2K is higher by 2.5% this month. Today, it hit a new cycle high of 1207, a mere 6pts shy of the July high of 1213.
Once we see a monthly close in the 1220s - a decisive move above the double top of March/July, it will be a critical bullish signal for where the broader equity market is headed.
Dow 1002pt swing across 5 days
Maybe the market is starting to get used to these hyper-ramps, but to reflect upon a 1002pt gain since last Tuesday's close.. is incredible.
Most notable... just 3 monthly net declines this year... and only one of those - January, could even be said to be 'significant'. Dow 20k looks to be a very viable target by late spring.
Christmas eve will see the weekly jobless claims, along with the EIA oil report.
US equity markets will close early at 1pm.
Outlook for 2015
I've had some submissions already,, keep on sending them.. see HERE for details.
Goodnight from London