Daily Archives: May 7, 2013

Young FrankenMarket Lives

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Excerpted from Notes From the Rabbit Hole #237:

Young FrankenMarket Lives

In failing to take a “healthy” correction to the equivalent of SPX 1350 to 1450 from the upside target zone of 1550 to 1590, the market is now running on policy and momentum. Hence we now dub thee Young FrankenMarket; Ben Bernanke’s creation, sustained by government and legacy MBA debt, following Alan Greenspan’s monster that was stitched together with artificially low interest rates that ultimately manifested in a huge commercial credit bubble. (more…)

After The Break Up

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Now that SPX has firmly broken over resistance I have been carefully considering the trendline setup here on SPX. That’s not to say that the short term bear case is entirely dead yet, but it is mostly dead and I won’t be considering it seriously unless we see a very sharp retracement below broken resistance in the very near future. One of the last wisps of hope here for the bear case here is the TLT chart, which still hasn’t yet broken back below broken falling wedge resistance and the 200 DMA in the same area. It’s also worth noting of course that SPX has not yet broken above negative RSI divergence on either of the SPX daily or weekly charts: (more…)