If you look at the 3 month chart for nasdaq & S&P they look very stable No spires or parabolas-just a linear runup As stated before this is the start of someting huge...I dont see this rally ending any time soon, but this rally will continue for the next 5-10 years.
This is what many said back earlier this year when everyone thought we were going to 12,000. Then everything just went straight down for 3 months. Least when we dropped we had those triple digit bounces, were not seeing any pullbacks since early August.
The intraday support strength we're seeing is amazing though Evertime there is even a hint of a selloff someone bids it back up in sort order, especially in the morning. And there is the usual short squeeze at in the last hour. The kind of trading activity seen in the past 4 months should be enough to prove the so called efficient market hypothesis as wrong. Nasdaq to close up 1% easily today
If you compare the last drop in mid 2006 to this year end rally seems to me the bears have been hurt more by this rise in equities then the bulls felt during the drop.
anyone notice these abundant overnight repos financed by the fed at about 10bill/pop, everytime the market rallies on potentially bad fed news? Sort of like a fedex atm for long side traders. "The market rally was fueled by consumers with more cash to burn...." yeah, right.
http://www.newyorkfed.org/markets/omo/dmm/temp.cfm today's Fed pump: $7.0b vs. $Zero expiring. makes a net $35.25b!! still floating out there looking for a home go market $$$$