Sometimes I guess sarcasm doesn't get across very well. I posted an extremely weak looking chart as a response to austinp's legitimate question "where are the breakouts" and wrote Code: I thought the last breakout to the upside of the rising wedge in the SP500 was convincing and extremely bullish!!! Translation for ET posters in plain English: Code: Yes, we're extended. Yes, breakouts on light volume from rising wedges have the potential to break down with a vengeance. From failed moves come fast moves. Watch out. Use stops on all positions. Don't put your cat in the microwave.
Sorry makloda, I was distracted by the fact that you've been chiming in with the perma-bulls on another thread. Sarcasm will generally go unnoticed when it comes from the mouth of one who's known to hold radical opinion. I would call anyone in the "100% up room to go" camp radical. They are the definition of investment euphoria.
If a good deal of you think we are due for a correction based on chart patterns there are enough of you out there to have this already priced into the market. If a correction does occur it won't be for any reason you know of yet. It will have to be something that takes us by utter surprise, a real catalyst.
How about a surprise let down in the housing sector causing a big selloff in financials (the biggest SPX component), followed by 3 Fed statements back-to-back about significant inflationary risk and potential rate HIKES, all just one week after the official FOMC policy statement said "falling inflationary pressures and stabilizing housing"? {edit} That's not to mention the chip sector (second heaviest on SPX) that was widely upgraded to bullish today after being beaten down for quite some time, only to get slaughtered by bad news and selloff convincingly.
================= QQQQ looks more bearish than SPX/SPY; QQQQ is below 50 dma, better sell volume lately, more % drop, better sell volume last 6 months. SPY/SPX may sell off like that may-day, Dan has made SOME UNUSUAL BIG BUCKS trading; but FEB is not as historicaly weak as summertime/May or OCT.