Indices are doing what most traders/technicians were NOT ready for...making new 09 highs DAILY on a closing basis...
Today we have another bear Doug Kass who is "claiming" he KNOWS that we have reached the "top in this market"
So..Now we have Prechter,Roubini,Kass,Art Cashin,Adami plus majority of technicians/traders shorting this market for the last 2 months...result has been new closing HIGH on a daily basis......
Why are we going UP...because CNBC has been giving play on a daily basis to BEARISH/SHORT calls...I have NEVER seen a TOP drum roll of this magnitude EVER.....
I do not see a major pullback based on RSI as listed below :
S&P 500 66.77
Nasdaq 62.61
Dow 68.49
These are NOT "overbought reading based on RSI"
Previous High RSI was above 76 area..which we SHOULD exceed in NEXT runup....
We are coming out of the biggest slump and traders HAVE sold this market either SHORT or are on the sidelines......so more money will be deployed after Labour day week...
Based on Volume pattern...i do NOT see any selling pressure .......
We will probably mark time along these levels for couple of weeks & then another move UP which will be to "clean UP shorts"....once shorts become bull then we will have meaningful correction......of upto 9%
IF.....I have to take a guess...that stage is above 1100 area in S&P 500......
Strong stocks included V,NDN,MRVL,GRMN,GNK,RVBD,BZH,LEN,CIEN......
AH Futures are RED
AH Nikkei is RED
BLOG does NOT give buy or sell.
Saleem
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