Eight trading days to go

It was another week for the equity bulls, having recovered from a mild panic on Monday. The sp'500 saw a very significant rebound from a Monday low of 1834 to breaking a new high of 1883. The big issue now is how will the market react at the next FOMC?


sp'weekly8

sp'weekly4

Summary

*note, that the upside targets on weekly'4, are unadjusted from last year. Right now, I'd look for the low sp'1900s in the current wave.
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So, we're just 8 trading days away from the next FOMC.

Considering the jobs data today, it'd seem likely we will still see QE'taper'3 go ahead. That will likely bring monthly QE down to $55bn starting in April.

Chart weekly'8 - to my surprise, has been the one to follow since I first posted it last summer. If it continues to be right, then we'll see a key intermediate'3 top at the next FOMC, and from there, the first target will be a hit of the lower weekly bollinger. By end March, that will be around sp'1820, so...we might only be looking at a 5-6% decline in an initial down wave.

As ever though.. one day at a time.

Goodnight from London
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*the weekend post will be on the US monthly indexes