We continue to grind higher regardless of what you think, feel or believe. The market seeks to fuck your belief system up, and its doing just that. The Wall of Worry is vertical and growing faster and wider than the wall seperating Israel from the Palestinians. They figured out how to build a wall. So have the Chinese. What’s wrong with us?
Look, overbought markets stay overbought and today is not an exception. Knowing that there has been every opportunity to crack the market wide open–but that it didn’t happen–might very well be the excuse to be confident. But now we are magically through our SPX 1120 target and 1130 is big resistance. Somehow we should now expect a test of the January highs IF we can continue to probe the 1130 area. I don’t want to believe that could or would happen just now, but we seem to be on our way there.
Don’t chase and stay with existing positions with your finger on the trigger. All that is missing is volume, as usual.
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Yesterday I was looking at the very similar *Potential* patterns of (July 2007–October 2007 & January 2010–May-ish 2010???) Look at the July 2007 Highs, swift August 07′ correction, and then a march to higher highs in October 2007 and now what could potentially be the same pattern repeating again with January 2010 fulfilling the July 07′ high, the swift late january/early February 10′ correction and the possibilty of a march to new highs(a top) sometime in mid 2010ish timeframe. Any opinion on the idea or are you still in the full year range bound(2004ish) camp?
Both the $SPX & $INDU have Very Similar patterns forming in the 2007 & 2010 scenario I played out above. Obviously this is just an idea.
Love your non-bias views on direction
The concept seems so simple but few want to just let the market decide where we are going.
It’s just doing what it does best, frustrate the majority.