Saturday, January 07, 2012


The S&P 500 index has crossed above the multi-month declining tops trend line - albeit hesitantly:
I'll be more confident about this breakout if the S&P passes 1285, the highest mark in over five months.

As for the long-term forecast, nothing has changed. The stock market is highly over-priced by historical measures. The dividend yield of the S&P 500 is a paltry 2.1%, and it simply cannot and will not remain that low forever.

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