No it won't. The raising of the debt limit could be measured in trillions, but at the most only a couple trillion, and without spending cuts, the raised limit will run out of wiggle room very quickly. The US will default, and if the Fed is smart, will recognize that they are not responsible for correcting an economy managed by an irresponsible administration. As monetarists primarily, creating slush funds for treasuries will not help the situation, but may keep rates low for an extended period of time. However, that extended period of time <b>GUARANTEED WILL EVENTUALLY LEAD TO HIGHER INTEREST RATES THROUGH <i>INFLATION</i>.</b> The US public must prepare for drastic cuts to overcome all of the government's wasteful spending, which, I might say, is very unlikely to continue for very much longer. 3-5 years, not even till 2018. Any bond investor in United States Treasuries is being ripped off, and once we get ppi and cpi later this week, I think the yoy rise of 7.5% will make it painfully obvious that owning bonds is a losing proposition, and anyone who wants credibility on this issue should not be a proponent for any type of fixed income investing. Short term rates especially do not create any profitable investing scheme, but I did notice one foreign pundit saying that ten year will go to 250 or 275.
So asking about bullish movement, I think is wrong. I don't see a market going higher. I see it going lower. Failing to go slightly over the 52 week high is indicative of the start of a bear market, as the lower highs we are seeing around 2375 is pretty obvious that we are in a bear trend. When it starts is debatable. I took a short in ND at 2391.5 on Sunday and 2393 in NQ at the same time. I will say though this particular chart is short at 2262 and it went to 2421, but it's hanging in there.