I was wondering whether we would see some correction this week, but I'm not really seeing anything suggesting that might happen. On ES and NQ we are continuing to chop sideways to up. ES broke short term support and is now crawling up the broken trendline:
There is no good news for bears from USD either. EURUSD has made a rounded bottom and broken up from the declining channel from the early November top. I'm expecting more upside:
One thing we have been missing since the beginning of the equities spike up in December is any sort of pattern to suggest when we might see a top. We do have patterns, but they're larger and longer term, and we haven't reached the upside targets yet. I've posted the rising wedge on IWM a few times and here's the RUT version of that:
There's also a rising wedge on SPX and the upside target is in the 1285 area. You can see it here on the SPX daily chart.
Will we make those upside targets? Hard to say but it looks very possible. One thing I'm watching carefully for directional clues is silver, which is still in the triangle I first posted two weeks ago:
Bonds look a better play than equities here and TLT is still heading towards the upside target on the falling wedge. That's currently in the 95.5 area:
I'm only going to be posting intermittently until Wednesday 5th January though I'm expecting to do posts on Friday and probably Saturday this week.
