Bull maniacs get the R2K signal

It was another week in favour of the bull maniacs, with the second consecutive net weekly gain for the sp'500 of 18pts (0.9%) @ 2088. Far more important though, the R2K, having been stuck in a range across 2014, has achieved a key break >1213. There is nothing to stop this market now.


sp'weekly7

R2K, monthly

Summary

*the second consecutive weekly green candle on the sp'500 'rainbow' chart... there is simply nothing bearish here. It is notable that the upper bol will be offering the 2115/20 zone by end year.
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Since the big turn in mid October, the market has achieved net weekly gains for 9 of the past 11 weeks. There is no sign of this latest up wave ending.. and indeed.. the 2130/50 zone looks a relatively easy target by mid/late January.

Have a good weekend... and goodnight from London

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*the weekend post will be on the US weekly indexes

Daily Index Cycle update

US equities climbed into the weekend, sp +6pts @ 2088 (new historic high 2092). The two leaders - Trans/R2K, settled higher by 0.2% and 0.7% respectively. Near term outlook is bullish into the new year... with next upside target zone of sp'2130/50.


sp'daily5

R2K

Trans

Summary

*most notable today.. if not perhaps the entire year, is the R2K, which has finally broken the double top of March/July (1212/13). The break should be seen as a powerfully bullish signal, that is highly suggestive of sp'2500 this year.. if not much higher.

On any basis, ALL cycles remain outright bullish.

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a little more later...

Volatility net lower for a second week

With the equity market continuing to rally from the pre-FOMC low of sp'1972 (with a new historic high of 2092)... the VIX is naturally very subdued, settling 0.9% @ 14.50. The 12/11s look viable into end year/January. Across the week, the VIX declined -12.1%.


VIX'daily3

VIX'weekly

Summary

*not surprisingly, there was a last minute 'whack the VIX' event.. as often happens into the weekend.

VIX'1min

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Weekly MACD (blue bar histogram) cycle is set for a bearish cross, with a viable 4-6 weeks of downside... reflecting an equity market that could easily be in the sp'2040/60 zone by late Jan/early Feb.

The next VIX spike will likely not break back above the key 20 threshold
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more later.... on the indexes