20,000 and beyond

US equity indexes closed broadly higher, sp +18pts @ 2298. The two leaders - Trans/R2K, settled higher by 1.4% and 1.0% respectively. VIX settled -2.3% @ 10.81. Near term outlook offers further upside into the weekend, and probably into the second week of February... to the sp'2320/30s.


sp'daily5

VIX'daily3

Summary

Today was day'2 UP, of what most should now recognise is a new up wave. The 'consolidation in time' phase is complete, and we're already well into new historic territory.

Naturally, the VIX remains subdued. Its almost a little surprising that Dow 20k wasn't enough to see the VIX cool (if briefly) to single digits. We've not seen VIX 9s since Feb'2007.
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Dow 20,000 is only 1pt above 19999, but it IS important.

I see some - such as Armstrong, regularly talk about Dow 23k. I can't disagree with that. Ironically, I'm more interested in some kind of hyper blow-off top to 25/26k.

Dow'monthly3 - fib' extrapolations

Yours truly - like many of you, is battling away in what remains a very twisted market. For now.. only a maniac would try shorting this.

Goodnight from London