10am update - opening reversal

Equities open a touch lower, but the equity bears remain powerless, and we have a clear reversal underway. The R2K looks especially bullish, with upside into the 1190/1200s this week, which would decisively break the remaining bearish H/S scenario.


R2K, daily

Summary

*I am long the R2K, seeking an exit in the 1190s within the next few days.

However, if we do see the 1190s, I'll also be resigned to much higher levels by mid July, 1225/50 zone, and so I would look to repeatedly go long the R2K for another month.
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Notable strength,

NFLX, daily.

Talk of the big $500 again, which indeed seems viable by next earnings.


10.12am... sp'1941...and we're headed to new highs....with the R2K powering higher.

The 1960/70s will soon be within range....although I don't quite expect that tomorrow.

Pre-Market Brief

Good morning. Futures are a little higher, sp +3pts, we're set to open around 1940 - a mere 15pts shy of breaking a new historic high. Precious metals are weak, Gold -$7. Equity bulls should be seeking moderate net daily gains, with the sp' in the 1945/50 zone.


sp'60min

Summary

*awaiting CPI data at 8.30am
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So, we're set to open a little higher, and I'd be surprised today if we don't get a daily close somewhere in the sp'1940s.

Yes, it could be a bear flag - as seen on the hourly/daily charts, but... price action does not favour the bears. It took the bears almost a whole week just to knock the market from 1955 to 1925, and I sure don't see sub 1900s any time soon.

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Video update from Mr Carboni



Certainly, I agree with Oscar on the R2K, and I am seeking the 1190/1200s within a few days.
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Good wishes for Tuesday trading!
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8.33am. data comes broadly in line....  but indexes swing lower... sp -2pts, 1935.

Metals still slipping, Gold -$9

Daily Wrap

US indexes saw minor chop across the day, sp +1pt @ 1937. The two leaders - Trans/R2K, settled -0.2% and +0.4% respectively. The broader trend remains one of underlying upside, with new historic highs into the sp'1960/70s viable later this week.


sp'daily5

sp'weekly8b

Summary

A pretty quiet day in market land, and in many ways, this could remain the case until Wednesday afternoon. Yet, even then, the market is not likely to be surprised. Just about everyone is expecting QE taper'5.

All things considered, there is little to get me interested on the bearish side, unless we are trading in the 1960/70s. Even then, the problem will be, just what would be the reason the market might fall, other than a natural down cycle?


Looking ahead

Tuesday will see CPI and housing starts, certainly enough to get the market moving at least a little.

*next sig' QE is not until Thursday.
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**I continue to hold long via CHK, WFM, and an index block

...and I think that will suffice for today.

Goodnight from London