We, ever so surprisingly, closed at the maximum extent of resistance right at the end of the quarter.
We ran no less than 51 points on the S&P in 4 trading days. EVEN DURING turmoil and protests in Greece BEFORE the vote even happened.
but wait... Window dressing is illegal. it does not happen.
My ass it doesn't happen. Snorting blow is illegal too, but it doesn't mean nobody is doing it. It just means they aren't getting caught.
Anywho, maybe folks who didn't will pay attention next time that we are near end of a quarter. If there's saving to be done, they will save it.
Moving on..
The FED did it's last POMO of QE2 today. Anyone seen what happened with bonds the last couple days? Keep an eye on that. When (not if) they pass the debt ceiling hike, issuance is going to ramp to catch up and this is at the same time we have some auctions going badly with the FED back pedaling. If you had any intentions of buying a home or refinancing, you might want to do that real soon.
And in other news, Mr. Turbo Tax Timmy might step down after the debt ceiling hike finally happens. Most of you will cheer... YEAH!.. GO FUCK YOURSELF GEITHNER!!.. I don't like turbo Timmy either, in fact I hate him and Bernanke and all the other banker slime. I have unfortunate news for you though.. flowers don't grow on slime. You think some champion of fiscal sanity is going to suddenly come out of nowhere and be Timmy's replacment to fix the world? Sadly... no. Slime will be replaced with.... you got it... more fucking slime. Remember that Geithner replaced our good friend Hank Paulson, who decided it was a good idea to bail out every bank in existence to the tune of 3 trillion dollars I think we've spent now. Sorry, but prepare yourself for more slime.
Only 1 chart for tonight;
As you can see, we closed above both the 50 and 100dma's, which is significant, but we also closed right at the last line of resistance, which is our last potential downtrend line for the correction.
Mostly bad news for bears here. All I can say is that we are now VERY overbought on the slow stochs, but we have room in the MACD and RSI all on the daily. I'm neutral overall on those signals. All the bears really have here is that we are still under that trendline and the hourly stochs, MACD and RSI are extremely overbought. So we most likely have a pullback coming after today.
The question is what that pullback looks like. If it's a mild pullback that just kind of floats lightly down for a few days to burn off overbought, look out, we are going flying north and probably to new highs. The bears will desperately need this next round of selling to be very impulsive and overpowering.
Otherwise, I expect to see over 1400 sometime this summer before this really tops sometime late this year, early next year. With the Greece can kicked, there's not a lot of catalysts to the downside. Bears either need treasury rates to go flying north, oil prices to go flying north again, or another country in Europe to join the bailout begging club.
GL
CJ
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