The SP500 finally broke resistance and was able to reach a new all time high. Also, the NASDAQ closed at an all time high, 15 years after the dot com bubble. Now that bulls are back in control, I expect new all time highs before another substantial correction. Hard to say if the market can build up enough momentum to reach 2,200 but the IHS target of 2,148 looks attainable. Also, oil seems to be resuming its rally and this provides support to the broader market. This is a market that doesn't really want to go down and despite opinions of this being a "bubble", the fact is that forward PE for the market is not unusually expensive at 17. I am sure there will be bigger corrections to come but until there are true signs of an economic slowdown, higher highs are almost a given.
I closed my VXX position at a loss and I'll buy back again if the IHS target is reached. I also added oil yesterday in after hours and I am expecting $60+ in the near future, in fact oil might even reach its 200 DMA trending down around $70.
For further analysis on the NASDAQ, DJI, RUT, Gold, Silver and Oil please visit http://www.ewaveanalytics.com
Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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