Monday, August 13, 2012

This rally has no legs

None of my stock market indicators have anything good to say about the current 2-month rally. Optimism is returning (bearish), seasonality is poor (neutral), and other market indicators say we're in the vicinity of a market top. The April 2nd S&P peak of 1419 is a potential resistance level, while the October 9, 2007 peak of 1565 is a more formidable one, since it's paired with the 2000 market peak of S&P 1527.

In other words, I'm watching for the next bear market signal.

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