Thursday, 1 January 2015

Daily Index Cycle update

US equities saw some rather significant weakness into the yearly close, sp -21pts @ 2058. The two leaders - Trans/R2K, settled lower by -0.6% and -0.7% respectively. Near term outlook is for renewed strength into January... prime upside target zone remains sp'2130/50.





There are arguably a great many 'year end' trading reasons why there was some unexpected strong weakness this afternoon. This was further reflected in the VIX, having come close to breaking the big 20 threshold.

However, the broader trend remains bullish.. and the market continues to see a series of higher highs.. and higher lows.

Barring a break of the pre-FOMC low of sp'1972, I can't take any of this weeks declines seriously.

a little more later...