Whether we have a rocket that's going to explode into pieces and fall back to earth or we have a rocket that will head into orbit.. we have a rocket and they will both go up for at least awhile.
Everything except the XLF is back above all moving averages on a close. The XLF made it back over the 200dma and there's a lot of room between the 200 and resistance at the 100.
The Russel 2000 and DOW Jones Real Estate are both approaching a level where they will naturally pullback some here, the S&P is not quite there yet.
I suspect we'll open higher and let the S&P and DOW Industrials top out the stochs and catch up with the Russel and Real Estate. Then we'll probably have a pullback.
After that though, unless the pullback turns into a rout and we head back under moving averages in a hurry, we are going a lot higher.
Looks like 1354ish is an immediate S&P target, then a pullback, and then probably taking out 1370 and going higher. I give the S&P a very high probability of taking out 1400, maybe as high as 1450.
Here are the charts;
S&P
Russel 2000 (IWM)
DOW Jones Real Estate (IYR)
Sorry bears, all you can hope for is a violent reversal in the next 3-4 days.
GL
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