In spite of finding a lot of individual charts that look like promising short candidates, I will be the first to admit that the broad market has not given any kind of “all clear’ signal to the bears. On the contrary, looking at a trio of exponential moving averages, the bulls continue to just chug this thing higher:
If any of you can remember what it was like to have a market that was permitted to trade based upon the economy, as opposed to centrally-planned politically-motivated wishes of central bankers, the chart below illustrates nicely how major crossovers portend sea-changes in markets. Ah, how I long for those salad days.
In any case, I am already bracing myself for Wednesday’s madness. It could be the most frantic trading day of the year.