This is exactly the type of market that I hate. I don’t like misdirection and I certainly do not like failed Armageddons. Nevertheless, the recent 6 month OS reading in The PPT proved sagely. I should have taken my computer brain’s advice.
It is of no use to lament over spilt milk.
As the market stretches above 13,000, just know we are at the upper limits of the recent trading range. Although I am not a big proponent of technical analysis, I do respect market forces that are guided by it. Should we move higher from here, there is a strong likelihood that all hell will break loose to the upside. The number one driver of stocks is the prospect that the Fed will enact QE3.
I cannot see Ben emptying his clips with the Dow above 13,000. It makes no sense.
In the meantime, I am building a watchlist and will put some more money to work next week, in the event we break out. Until then, I am going to assume the recent trading range is intact and stocks are heading lower, over the next 5 trading days.