Closing Brief

The main indexes closed with further gains, sp +8pts @ 1842. The two leaders - Trans/R2K, settled higher by 0.3% and 0.1% respectively. A year end close somewhere in the sp'1850/70s is now the best bullish outlook by the Tuesday Dec'31st close.


sp'daily'5

VIX'daily3

Summary

*I won't bother with the hourly charts, doesn't seem any point in getting overly focused on the small cycles.
--

Frankly, I'm real tired, not least since visitor traffic is light, and there is little point in posting as much.

As for the VIX, yes, it has something of a floor-spike, but I am dismissive of it. VIX is low, and the earlier break into the 11s is kinda important to note.

There is zero reason why equities won't rally into January..along with a lower VIX.
--

A little more later in the evening
-

Closing update from Riley


--

3pm update - closing hour gains

Equity indexes have seen a further micro wave to the upside, and we're in the sp'1840s, with the Dow 16500s likely by the Friday close. The bigger weekly/monthly cycles have been warning of these year end levels...since the early summer.


Dow'weekly

Summary

With the VIX slipping into the 11s, and sp'1840s..what else is there to say?

Its not like there wasn't ample warning of this.

Since the June low of sp'1560s, the bigger cycles have been offering rather clear price action and even clearer price structure.

The Dow had a six month giant bull flag.....

Hell, how could you not complete the rest of the sentence by now?
--

yours

Tired of watching the bearish idiots still tout their nonsense.

2pm update - VIX falls into the 11s

With the sp'1840s, and Dow in the 16400s, it remains a fearless market. Naturally, the VIX has slipped into the 11s, and it does indeed reflect the mainstream who have zero concern in the near and mid term. The hysteria in TWTR, +5% in the $73s is similarly reflective of this situation.


VIX'daily3

TWTR, daily

Summary

What is there to say?

We have indexes at new highs and the VIX is in the 11s. Arguably, the price action in TWTR is even more illustrative of how crazy bullish things are right now.
--