Wednesday 13 July 2016

The Dow follows the S&P

US equities closed broadly higher for the eighth day of the past ten, sp +14pts @ 2152 (intra high 2155). The two leaders - Trans/R2K, settled higher by 2.2% and 1.3% respectively. Outlook is bullish (at least) into early September.

Dow, monthly



So, the Dow has followed the sp'500, with a new historic high of 18371. Next resistance are the 18600/700s.

Any price action in the 19000s would threaten extreme 'irrational exhuberance' of 25/26k, which likely take until spring 2018.

Regardless of what you might think of that, two new historic highs can't be seen as bearish, right?

An update on China, monthly

A monthly close above the 10MA in the 3100s, should bode for summer/autumnal upside to 4k, with 4400/500s viable by year end. It will be interesting to see if the PBOC decide to loosen monetary policy some more, or perhaps to depreciate their currency ahead of a Trump presidency.

On that thought...........

Goodnight from London

Video update from Walker

Almost a full hour of chart chatter. As ever, make of that, what you will.