Market call: target 1050-1100

I think there will be a little higher from here over the next 1-2 sessions perhaps and then a huge shoot down into early August to 950 zone --VIX is already giving a sell here, but given the momentum this should be only to reverse them all and make a new recovery high closer to 1050-1100 zone around later in August. I tend to think that a rally should not really go too far beyond the second half of August, but we'll see. [ref: 1, 2]

We do not have the energy leadership here for a sure top, but the tech and industrials are not leading. The composite indices are not overly bearish either with RUT and MID leadership (due to the financials and materials sector generally leading), but Nasdaq is now lagging. So, there are signs of exhaustion for the intermediate term as well, however the divergences and internal deterioration is not that strong to end this rally at these prices, we should see higher after a pull back...

Let them engineer a rally higher on lower and lower volume on the monthly charts. The inflection point at the crash gap is sucking higher, it should saturate probably before reaching there. I am waiting for an excitement over SPX 1000...

BTW, Roubini approves of Bernanke to be appointed for another term as the 'Great Preventer'.

Best of luck.

Bernanke's a schmuck. He begged and promised he'd kiss every politico's backside to get the job. Now, he campaigning for reappointment.

Edited by HoseB, 27 July 2009 - 09:14 PM.

to get the job.

We all do what we have to do, I guess he doesn't want to join to the rest of the unemployed...