Nothing Really Matters!

S&P 2000? WHY NOT

It's a crazy market; rally late Thursday when Mubarak defiantly refused to resign and then rally and Friday apparently because he did finally resign. It is being said the chat rooms have reached the point of out and out mania. This market needs no excuse or reason. Foreclosures, revolutions, massive money printing, state & pension bankruptcy, nothing matters, overly bullish sentiment doesn't matter,  fraud perpetrated by the FED, JPM, and GS doesn't matter, the incredible debt bubble doesn't matter. Gold in a ten year bull doesn't matter, sky rocketing commodities don't signal inflation, 10% plus jobless doesn't matter, the amount of food stamp usage doesn't matter,; "Party on Garth, Party on Wayne".

I see no point in writing an update on the SPX everyday because everyday is an up day. You may think I am a pessimist or just sour graping here but as many know there is no fundamental reason for the markets to go up daily and technical and fundamental analysis is once again for fools and it doesn't matter this is  new market a new world. I have heard it all before. So I'm going to stop writing about the SPX and whats I see going on inside because it doesn't matter. I don't think there will be a signal or sign of impending doom.  another reliable indicator just signaled and that is the Pennystock guru's are coming out of the woodwork claiming 1500% returns in 7 days. maybe be thats the canary in the coal mine NAH!?! 

The SPX gained 18.28 points during the week. The range for the week was 19.05 points, 1.45%. This was the smallest weekly range since the holidays. The four week RSI of the four indices (SPX, Dow, NASDAQ, and Russell 2000) is 84. Pullbacks often occur as this RSI reaches 80 and bounces near 20. But we keep seeing this RSI move from overbought to neutral back to overbought; this is a bullish pattern.

Total tick for the week was 356,000. Extreme ticks strongly favored the bulls, 302 to 152. The more extreme than 1000 ticks were eight to zero for the bulls as well. This is two consecutive weeks that the ultra-extreme ticks have been bullish after eight weeks that favored the bears. On the NYSE, the advance/decline line increased during the week by 2,906 to a new all-time high and the 10 day average of Net Advancing increased from 410 to 606. There were 1,310 New Highs and 61 New Lows.

We read some analysts predicting flash crashes and other assorted large downward moves. Where’s the data to back up such claims? Indeed, anything is always possible; but some things are less likely than others. Whether manipulated or not (maybe even especially if manipulated, REALLY!?!), this market is being stampeded by those with horns. Bears are being trampled and gored. Ask anyone who is short how much fun they are having in this market.

I'm going to concentrate on contrarian indicators or developments in markets, which may help in predicting a down turn instead of writing what is no just mumbo jumbo that amounts to nothing. Heck just throw a dart and make money, anyone can do it, anyone can make money in this market, just quit your day jobs, long live the FED!

We are at all time high in terms of bullishness on the SPX, RSI is weakening but no change in price

See previous post looking for 49 or 4.9% yield on the 30yr for a 20% correction