Tuesday 22 July 2014

11am update - time for a turn

US equities are somewhat higher, with sig' gains of 1.1% in the R2K. Most notable, the Transports has broken a new historic high, whilst the sp'500 is within a point. Metals are starting to slide, Gold -$7. Oil is similarly starting to weaken, -0.3%


sp'60min


R2K, daily


Summary

The R2K looks especially floored on the daily MACD cycle. The 1130s look a pretty strong floor, which was the 61% retrace level.

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Its 11am, a typical turn time. Problem for the bears...

1. New high in the trans...with sp'500 close behind
2. There is no real downside pressure
3. Primary trend remains to the upside
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Equity bears should be in prayer mode about now...seeking a red daily close. It is possible, but I sure as hell won't be shorting it.

Even worse...there is sig' QE tomorrow..and Thursday.


11.07am... New historic high for the sp'500.

R2K +1.3%.... and that is a real problem for those on the short side, hoping for a reversal.


11.16am.. I can imagine some shorting this. I guess its viable, with a stop at 1986..but really, I ain't meddling at these levels.

Bears need an hourly close back <1982...not exactly asking a lot.


11.26am. VIX, hourly....


Possible floor...need a break above  12.50


11.35am  Hourly candle on the sp'500 is spiky... makes for a bad place to be going long.

Equity bears should remain on prayer mode... need a news story to spook the market this afternoon.