Equity and energy bears are exhausted

Having fallen from sp'2081 to 1812.. along with WTIC Oil imploding from the $38s to the $27s, it would seem its a case of bearish exhaustion. A short term floor appears in, with the market set to battle upward into February. Any bounce though.. is just that.. a bounce. Mid term targets remain unchanged.


sp'weekly1b

WTIC, weekly

Summary

re: sp'500: its possible equities will see a moderate net weekly gain, but regardless, it would seem 1812 is a short term low.

A rally into early February to the 1940/70 zone looks probable.... along with VIX 20/18s
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re: WTIC oil. Oil looks to have a short term floor of $27.56, and looks set to break/hold the $30 threshold. From there, the $35 threshold.

The underlying issue of over-supply remains COMPLETELY unresolved. Renewed weakness looks due.. probably to the teens, before there is adequate industry capitulation.

.. and the same issue applies to the (often overlooked) mining industry.

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Looking ahead

Friday will see PMI manu', existing home sales, and leading indicators.
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Goodnight from London