The main indexes closed lower for the first time in a week. Yet, the daily declines were only minor. There are multiple levels of support, and it looks very unlikely that the bears are going to be able to break under the recent key low of sp'1582. So far...nothing has changed.
sp'weekly
Summary
So, a down day...finally, but really, it wasn't anything of note, and does nothing to damage the weekly, never mind the bigger monthly upward trend. It wouldn't surprise me if the market won't even trade below 1600/1597 in this down cycle, if thats even what it is.
Todays close of 1626 still offers the possibility of a Friday/weekly close in the 1640s which would clearly annoy those seeking a major turn to the downside.
I realise a fair few are seeking a downside turn after May 20'th - for all sorts of different reasons. As things are, I just can't see it. As ever though, I am trying to keep an open mind. If we do somehow start trading <1570, then yes, things have perhaps...changed.
Looking ahead
The Bernanke speaks in the morning, as does another Fed bank president (Kansas) - Esther George. No doubt a few in market land will be listening to what both have to say on the current QE program.
On balance, we'll probably close higher tomorrow. The bulls should be very content with any weekly close >sp'1620. As it is, I remain content on the sidelines.
Goodnight from London
