Well it's time to take a closer look at the charts, as today we may have finally poked our heads above resistance and either a new leg higher is beginning or its a head fake and the market could finally be ready to fall.
The Fed continues to grease the skids with its weekly injections of paper money and the market seems to feel that all risk is off and its onward and upward from here on out.
Here's the daily price chart on the SPX and you can see that the price activity spent the last four days treading water and closed each day at or near the 1473 level. Today the Dow Transports set a new high and that flashed the signal to the laggards in the other indexes that all is well and a round of strong buying ensued. The thing you have to be careful with on a day like we had today is that it can be a double edged sword. This could be a throw over top or the continuation of the current bullish move. Indicators suggest, in either case, we are running out of steam and may need a rest.
Here's our long term monthly view of the same index which shows the market is completing a shorter term bearish rising wedge (yellow lines) and the longer term wedge, called by some the Jaws of death, in red. The six year cycle in green is projecting the next bottom in 2015 so the ride lower could take a year or two to complete.
Here's that super simple chart using the Renko format that provides near flawless signals. Currently the price data says we are bullish for now. Long Term investors should follow these signals with their equity index holdings.
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