I trade Technically. SPX has 1396-1420 area a 50 day MA and November lows to overcome. After that it can fly at will, they will become support levels and will be hard to break.
It will be known as the Charlie G. rally pump and dump....Charlie was good for a 600 point DOW swing.
Bear Market Rally which many of you don't understand or are even remotely capable of comprehending. FACT:The Economy is heading into recession. FACT:The markets have discounted a coming recession. BUT The question for the markets NOW becomes how long and how deep of a recession. Credit markets/Banks and Financials will continue to see major write offs. This will drag down the markets as Financials come clean and report write offs. Housing prices will continue to decline placing a further squeeze on the American Consumer. Credit Card writeoffs will escalate. As will defaults on auto purchases. Inflation IS A PROBLEM for the American consumer and will add to pressures on the American Consumer. Higher Gas Prices, Home heating and cooling prices, Higher food prices, ETC ETC ETC combined with falling home prices is not a positive for the Economy and Markets. I see a pull back for the markets to at least test the lows at some point soon. I do not see the market making new highs any time soon and breaking out to the upside. The recent rally is a Bear Market Rally as I see it. I see the markets trading lower and retesting Lows after the Rally peeters out. Enjoy the Rally, Trade it accordingly. I am a Trader both Long and Short on the market in various positions. The overall economy will dictate where this market goes. The financials are a leading market indicator. I believe the financials will suffer further price pressure and lead the markets down.
Why donot you say sky is falling and the Titanic is sinking while the band plays on and be done with it ? No one ever got rich by getting depressed and pathetic.