Saturday, July 16, 2005

┬┐Going Long?

Safe Haven | Know When To Hold Em - Are You Listening?
Of course, all good things must come to and end, but the S&P 500 may just be starting its breakout summer rally. Thursday's high of SPX at 1233 took out the March 7 high of 1229 and is a 4 year high. The bears will claim this is either a double top or some other arcane form of wave terminal bifurcation point. For the bulls, they are telling us that this is just a starting point from which the markets move higher as the bears cover their shorts. Technical buying will now move into stocks from bonds and also from the hoards of cash sitting on the sidelines. Volume has not been heavy. We may see volume increase in coming days as the bulls buy everything in sight and the bears sell everything they can to them. Market forces are positioning for a significant struggle as we get some big tech earnings next week.