OK, this market is showing some true strength. Maybe today is "the day." If we can (a) close up strong; and (b) make a good showing in the face of tomorrow's GDP and FOMC, we're probably in good shape for the multi-month rally we've been awaiting.

The classic measured target formula for a head and shoulders pattern is to subtract the peak from the neckline, add that value to the neckline, and voila, you have your target. In the case of the Russell (as viewed here through the IWM), the target was $44, and that has been reached (I've drawn tinted areas for easy viewing).

As I've pointed out before, the most incredible thing is that only five weeks ago the IWM was at its highest value ever in human history.

It's going to take the strength of Hercules to push this market up. I've sold 20 ES at the pink resistance zone. This market is very, very sick.

To quote inexplicably popular stock maven Jim Cramer, Don't Be Silly. Allow me to explain…….

This morning I saw the market move sharply higher. I still had 27 short positions. I started closing them out willy-nilly, not even looking at the charts. My rational for this, if you can call it that, was:

• They already had good profits
• I didn't want to hold shorts during a big upswing

Well, that was just dumb. As we know from the Three Rules, one should never do an ad hoc close. And I was ad-hoc'ing all over the place. Stupid.

So. Be like Jim. Don't be silly.

The market is having one beast of a time trying to make its way past the enormous overhead resistance. Try as it might, it doesn't have the strength. It's actually kind of sad………

My only really big bull position now is DIG, and I'm a relatively weak hand with that one.