Tuesday 28 October 2014

Daily Wrap

US equities saw a day of minor weak chop, sp -3pts @ 1961. The two leaders - Trans/R2K settled +0.7% and -0.1% respectively. Near term outlook offers continued chop..  with a brief foray into the 1970s.. before a swift reversal.


sp'daily5c - warning levels


Trans


Summary

*the Transports continues to be a major problem for those in bear land. If it breaks new highs, then it would bode strongly against any kind of November 'crashy' scenario.
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As things are, we have started the week with the second consecutive green candle on the weekly 'rainbow' chart...

sp'weekly7


Another green candle is not unexpected, and prices are stuck just under the key weekly 10MA, currently @ 1967. A brief move into the 1970s is tolerable, but I would certainly want to see a weekly/monthly close in the 1950s to keep the bigger cycles bearish.


Looking ahead

Tuesday will see Durable Goods orders, case shiller HPI, richmond fed, and consumer conf'. That should be plenty to wake most traders up, but many will likely not want to get involved ahead of the Fed.

*Next QE is.... ohh wait..... that's right.... its finally over :)
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Closing update from Riley



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Goodnight from London