- IPC                              38,173    -58    -0.15%

Today the market presents many confirmation signals of bull season, comented in previous posts.


THE INDEXES

IPC

- Presenting a healty pause in the rally. Only a thirth of the equities remains in overbought.
- Today detached from the mayor international indexes. Taking a pause in his un trend, and giving time to moderate the overbought of many of the equities. In this moment the mexican market has the conditons for a continuation of the up tren.
- The todays red candle respect the support (prior the resistance of the broken trading range).
- A big sell of Cemex, the investor taking profit from a big up of the previous days.
- Remember Technically Target 39,500.


Standard and Poor's 

- Moves in an up channel.



- Is in the center of the channel that is good for the up trend. Seems to be the 5th Elliott Wave. This both are good for the bulls. And the index has space for up more.
- Techincally Target 1,335.



Nasdaq 

- Also in a up channel. With very high hopes of upgrowth. But is slowing the speed of rise. In the near past was the leading index but not in this momento.
- Is moving in the high part of the channel, enabling a technical correction.


The technical long term picture:



Dow Jones

- Bull but without force and firmness. The most bull part is that has constructed strong supports.



VIX

. The VIX:VXV is very low, in the past this means a "top" is near and a down is comming (could be small or huge).
- Maybe the strong bull sentiment in the market delays this signal, but is accumulating with many others.



Put to Call Ration

- CPCE very low. Indicating a "top" is near. The same as the VIX cumulative bear signals. ¿For the begining of the next year, with a more bear friendly seasonality?



- CPC is also confirming the proximity of the high.



Dolar Euro. 

- The Euro is testing a dynamic support. If breaks it, the next suport is in US$1.26. This will not be good for the dolar.



Bank Index 

- Resuming his up momentum. Maybe in his 5th up Elliott Wave. Break important resistance.
- If mantains the momentum will be good for the SPX.



AIG

- According to the Bank Index, Have you seen AIG in the past days? Very very bull.
- In this moment testing an important resistance. Maybe a short-term bounce.



- The fiancial sector is very delayed, then the equities have a lot space to grow.
- AIG has a technical target of $68.00 But when?In this rally?



Seasonality

- Christmas week is bull.
- The day before Christmas was bull the last three years.

-Thursday december, 23;
- Dow Jones                71%
- Standard and Poor's  76%
- Nasdaq                     81%
-- Bull day. 

Market Sentiment 

According to Sentimentrader the sentiment of the market is very bull (in levels not seen since december 2006).


Liquidity 

- Align with the sentiment of the season, the liquidity is still entering in the market. This is very good for bulls and can override (al lest temporarily) the bear signals. The chart is from  Stocktiming.



The investors sentiment for the next year. 

The Bespoke readers think the next year will be bull. But expect a modest gain.



Tomorrow NYSE in Holidays.

- The short-term and the mid-term trends are up. 

- The sentiment of the market is very bull. The liquidity is still entering in the market and the buy is strong. The seasonality is very bull. 

- Many accumulative bear signals: CPC, CPCE, VIX:VXV, Hindenburg Omen, divergences, Overbought, Highs, and many more. Will wait until next year?