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The SPX has continued its rally towards the ideal 2410SPX region this past week that we presented to you a month ago. And, it seems we still have a few squiggles to the upside left before this pattern is completed, and then tested.
Those with a short bias in this market have not fared very well. At each and every twist and turn, the market has proved its bullish intent, and continues to confirm our expectations that our long-term target of 2537-2611SPX will be met, if not even possibly exceed by next year.
In fact, I have warned for quite some time that we will begin to see former bears turning quite bullish, and we have seen this occur over the last several months. While I still do not believe we have reached the euphoric levels needed to mark a significant top, many former bears are coming over to the dark side.
SPX made the initial double top target at 2356/7 and the rally I was expecting from the target area is in progress. The obvious fib retrace targets are the 50% at 2379 and the 61.8% at 2385.50 and the 61.8% is a strong match with the ideal backtest target on the daily chart at the daily middle band, currently at 2386/7. SPX daily chart:
Equity bulls aren’t exactly the most hearty, masculine folks on the planet. Let’s face it, for eight years now, every time there’s been the tiniest downtick, these antique-shopping, hair-dressing wimps shriek out for aid from whatever central banker is, shall we say, chosen. Getting wet-nursed nonstop can cause some pretty heavy conditioning. There is, it is widely accepted, no longer such thing as a bear market.
After yesterday’s selloff – – one DAY, mind you – – this dink shows up on CNBC: