Dow'30 - 20yr history
This is the same chart that I had posted this past weekend, and it sure is bullish. Every indicator is trending upward. Dow 14k looks very feasible within the next few months.
Transports - daily
The transports was most the most obedient index to the October trend line. It was the first to rollover...and the first to put in a near perfect bull flag.
Today, without question the bull flag has been broken above. The only thing for added confirmation would be a new high.
Treasury Bills - 10yr history
I rarely mention the bond market, but it is something I keep an eye on - not least due to Rick Santelli on clown channel. In particular, look at the MACD (green bar histogram) momentum indicator. We are not even positive cycle yet. We could comfortably cycle UP for another 3-6 months - and that would match up perfectly with a giant wave'5 UP in the main indexes.
The stuff nightmares are made of
The 3 charts noted above are indeed pretty scary. It is looking very feasible that sp'1450/1550 is very viable by mid summer. The VIX would probably hit 10, maybe even briefly 7-9 if Benny did QE3 leading to one final extreme period of irrational exuberance.
The question is can things keep ticking along 'calmly' in the world economy at least until early Autumn? The Bernanke still has QE3 sitting in dry dock, but its fully armed, and even if we pullback in the coming weeks, it'd give the Bernanke an excuse to buy a truck load of worthless MBS, and help indirectly recapitalise the banks with another trillion of Bernanke-bux.
Goodnight!