remember when the dow first hit 14k and then pulled back over a thousand points only to rebound on lower volume and break the 14k high? remember how all those sheep jumped in blindly because we broke the old high and ignored the low volume? remember how the market nose dived while the sheep stayed the course and kept buying more to average down? remember that? remember when we hit 11,200 on the down earlier this year and then we pulled back over a thopusand points only to rebound on low volume? i wonder if history will repeat itself. i wonder if there are still blind sheep lurking in the back ground ?
Unless there is very bad news about pending collapse of a large financial firm or country, the S&P 500 will continue going up because this is normal tedency. Keep an eye on possible problems in Latin America and Asia. Europe is history now, there will be no defaults after the 1 trillion plan.
Absolutely nothing "normal" about this. The Fed is constantly buying Treasuries from Primary Dealers via Permanent Open Market Operations (POMO) and algos are keeping the rally going. However, this kind of thing is never sustainable in the long-term. The charts are full of unhealthy gaps and divergences (e.g., see how badly financials and semiconductors are lagging). And fundamentals are awful--especially if you dig deeply into the employment and housing numbers.