Daily Index Cycle update

With the ECBs' Draghi's comments of 'I'll do anything to save the EU', the indexes gapped strongly up, but they really didn't do anything other than the initial gap. No one - not even the most deluded bull lunatic, who is touting new highs can suggest that today was anything other than an opening gap up based purely on 'mere talk' from a central banker.


Dow, daily

Sp, daily5

Transports

Summary

Certainly, we saw some large bullish candles on the daily cycle, although there were a few signs of weakness - see the Transports.

One real concern is that we now have an up tick on the MACD (blue bar histogram) cycle on ALL indexes. So, its possible we could tick up for a few days, put in a fourth lower MACD tower..before a collapse wave. Of course, price itself could trade sideways, whilst the MACD resets to a brief positive cycle.

Clearly, for those bears who were shorting from the 1350 to 1330 level in the past few days, today's close of 1360s is painful.

Lets see how the market reacts to the big Q2 GDP data (and consumer sentiment) tomorrow morning.

A little more later.