Why I Believe the S&Ps Will go to 1517

by PeterLBrandt

The analog with the 2010/2011 advance continues

Few trading situations are ever cut and dry, technically or fundamentally. Most markets are a mixed bag at any given time — there are some factors arguing in favor of a sustained advance, arguments in favor of a sustained decline and arguments in favor of the continuation of a trading range. This is currently true for the U.S. stock indexes.

The dominant technical factors, as I see them, include:

• Extremely light volume — bearish by the standards of conventional technical analysis
• Overbought readings using most acceptable overbought/oversold indicators. This fact, on the surface, argues at least for a major correction
• Strong uptrend on a daily basis — the market seems to shrug off all market sell offs. This is a constructive sign
• Most major stock indexes are range bound, except for the tech-heavy (and Apple laden) Nasdaq. This argues for a continuation of the range

Read the rest here.