Thursday 26 January 2017

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.




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.

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