Market up and running. Got to cover. We're nearly 12% off the 875 support floor on the S&P in less than two weeks.
Number of technicians point to 1020 or somewhere around there as the next resistance point. That's only 4.5% from where we are.
The fundamental underpinning to this rally, which is gaining momentum, is the palpable sense that the recession is over. Whether you believe that or not, and whether you believe the future is bright or not, is not factoring into the equation right now. You've got to get with the crowd or be crushed.
Earnings are generally better, but they are still very mixed. But the market has decided it is willing to take a leap of faith.
My sense is that most investors/traders are going back to their 2002-03 experience, and using that as their playbook.
P.S. If it turns out that we are genuinely on the road to recovery, I can't help but think we are now more likely than ever to repeat the mistakes of the past AND in much shorter order. In other words, the illusion of growth will return, the market will go up, and we'll come asunder again - probably within the next five years. The reason is the foundation is rotten and we haven't addressed our underlying problems.
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