Tuesday, 31 January 2017

Equities cruising higher

January saw a new historic high of sp'2300, as underlying price momentum continues to lean increasingly bullish. There is simply no sign of the current wave that began in Feb'2016 ending.



January saw a third consecutive net monthly gain, as - contrary to what some wish to believe, the post election rally continues.

For now, there is zero reason to be bearish unless a monthly close under the key 10MA, which will soon be in the 2200s.

It is entirely possible - if not probable, that we'll see the 2400s by May/June.

sp'monthly7 - ichimoku

Its interesting to note that by year end, the top of the cloud will be around sp'1950. Those calling for deflationary collapse really have no justification until a break inside the cloud.