Let me share with the public what I have been telling my subscribers. The market is trying to bottom. Reason: The Golden Cross.
NDX has crossed (200 over 50 days moving average). INDU has just cross slightly yesterday, and SPX is going towards it. That is the justification for the buying since Xmas. The Funds were able to move the technicals towards a bullish bias during the Xmas lull.
The catch: NDX has not been able to ramp through convincingly after the cross. It is holding onto it.
While GOOG is towards its 700 target.
I am still in the camp that SPX would test 1290 then pull back and then 1320. It may even hit 1400 as a back test of the breakdown in the bull channel.
Meanwhile, EUR, AUD has been pulling back. This is the positioning before the NFP which would provide the impetus for the ramp through the Golden Cross for SPX.
Though US market has been doing brilliantly, Asia markets have been languishing with their governments warning of sluggish year ahead. It is to be seen how much the FED wants to lead(/mislead) other world markets. Now in 2012, all the voting FED governors are Pigeons. So Benny is trying to find some lame excuse for a QE3.
Analyst are citing fear over 120billion loan to Greece next month. When have Greece not getting what it wants ? So all this EURO positioning is a farce. Basically I can throw away any Europe news, and focus on the new bull normal.
Meanwhile beware the IDES of March.
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