THE CANDY STORE WAS CLOSED FOR WEDNESDAY

It seems yesterday the indices made modest corrections after the 6 days rally. That is a normal pace and part of the deal; we can’t wait the always going up market that is not existing. The DJIA and S&P500 traded in a narrow range and closed slightly in negative territory and breaking the 6-day winning streak. No problem at all. You can’t take profit everyday, the candy shop needs to be closed sometimes. The market took a rest yesterday to go up today and tomorrow further up.

• Dow 16,502 -12 -0.07% 
• Nasdaq 4,127 -34 -0.83%
• S&P 500 1,875 -5 -0.24%

The S&P500 has been trading nearly to the record levels, this slight consolidation means only some short break and rest in the strong bullish momentum and we are expecting more gains in the following days up to 1.891 first and then could come the break out to 1.900. The market is strong and wants to hit the 1.900 mental level finally after closely four months huge ranging. Look at the daily chart how strong the upside power, shows much more strength than the bearish side. The recovery after the two weeks correction was rapid and impressive. There is no doubt we are in a risk off mood and the buyers are stronger than the sellers.

The BFM Assets Team.