Saturday, January 11, 2014

MTU Weekend Ed. - Short Term Update (1/10/14 close)

Monthly Outlook Update (1/3/14) mentioned that odds favor a new record high in stocks. Recent price actions appear to lend some support.

The decline in SP500 from its December high appears corrective (Chart 1), whether stocks have bottomed based on the blue count or need another drop based on the red count. 

Moreover, SP400 mid-cap index actually took out its December high this past week and moved to a fresh record high.

As such, there's no change in our outlook for the larger structure. The advance since the June 2013 low ends up as an ending diagonal triangle (Chart 2-green), with a final overthrow still to come.






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