Indices are all set for more new highs.....

Indices are setting the stage for more gains.

S&P 500 closed @ absolute high on Friday @ 1437.92.

Friday's gain is more important as it came on "downbeat Jobs data". Indices should have pulled back "substantially"...but it did not on bad news. Actually we closed @ highest point in S&P 500. This is a strong signal that we are going "further UP".

Many traders are counting on what could go wrong, but indices have ignored majority of "wrongs"

TAPE is relieved that, ECB has come "full force" to defend European Economy & Euro. IMF is also backing & will participate in ECB plan.

Many non-events are being talked about, like German verdict or Fed move...those are not going to be "the key driver of world stock market"....it was all along ECB & they have come through.

TAPE has given its verdict "over & over again" that ECB matters......

Now the question IS.......?

Where do we go from here ?

I personally believe that S&P 500 could march towards 1500, overbought conditions can be monitored by keeping an eye on RSI.....currently its @ 69.34..it can easily go towards 80 area based on current strength.

Any pullbacks, should be viewed as "normal" in a strong bull market.

I have not seen this kind of stable market in a long time, strategy needs to reflect that. Most stocks are getting stronger & stronger going into 80 RSI..a sign of a very strong TAPE.

Chinese slowdown should reverse soon. & will go to normalized GDP growth of around 9%.

Indian economy should also emerge from their slowdown of 5% GDP towards 7% GDP

US economy is showing pulse if one can "ignore biased political outburst"

Canadian economy will surge once Chinese GDP goes in growth mode. Canada is heavily dependent on Commodities export.

With ECB decision & surging Euro, confidence in EU zone will gradually return.

All of the above is very good for "psychological boost" to investors confidence worldwide.

SO..be OPTIMISTIC as TAPE has turned for the BETTER.

Be diversified & be confident, as EQUITIES have once again come around, to be the-best future investment.

BLOG does NOT give buy or sell.

Saleem