Daily Index Cycle update

The US indexes all closed higher for a fourth consecutive day. The headline indexes (Dow, SP, Nas) all held gains of around 0.5%. Yet it was the two leaders - Trans and R2K, that lead again, with gains of 1.6 and 0.8% respectively. Near term trend shows no sign of changing.


Rus'2000

SP'daily5

Trans

Summary

A pretty straight forward day. No sellers, a 'few' buyers, aided by QE-pomo, and melted higher by the algo- bots.

The scary thing is that this type of price action could last for some weeks, if not 3-4 months - as the transports weekly chart would suggest.

I continue to see some bears taking new short positions, yet this just seems outright crazy considering what was a very important bear failure last Thurs/Friday.

a little more later

Volatility a touch higher

Despite the main indexes climbing for a fourth day, the VIX also managed a daily gain, +1.3% @ 12.83  Yet, today's gain is arguably nothing more than 'mere noise'. As we've seen many times, the VIX could simply meander in the 15-12s for weeks, if not months.


VIX'daily3

Summary

There really isn't much to take from any of the VIX charts now. The intra-day action is so minor, it barely registers at all.

Any hopes of VIX above the key 20 threshold...are arguably to be put on hold until the late summer.
--

more later, on those melting indexes

Closing Brief

The market saw the fourth consecutive daily gain, lead once again by the transports, +1.5% in the high 6300s. The other indexes saw more moderate gains of around 0.5%. Whilst the QE-POMO continues, bears face relentless problems.


sp'60min

Summary

Four days up..and I can't see this nonsense ending any time soon. Ohh sure we could pull back, a day..maybe two, but considering the weekly and monthly charts, we'll surely just melt right back up.

If this is the start of a 3-4 month algo-bot melt into the sp'1800s, its going to make the summer of 2013 one which the bears should simply just step aside from.

*I remain on the sidelines, Long Oil and Short silver are trades I will be looking for in the days ahead...when entry levels/conditions look better.

have a good evening.