Lets take a look at the usual six main US indexes...
*all charts, monthly, 6yr
IWM (representing Rus'2000)
Nasdaq Comp
Dow
NYSE Comp
SP
Trans
Summary
What is there to say, I mean..really? The trend is UP..and there is absolutely no sign of it ending.
The Jan-April trading period is usually one of higher prices, and so I can only assume we'll be broadly battling higher until the late spring. So, that probably means sp'1540/50, if not at least one test of the 2007 high of 1576.
There is a very real likelihood that we'll even be trading in the sp'1600s by April/May. Whether we then see a 10-15% correction, that's the big unknown. My best guess is that we will indeed see a pullback - much like early summer 2012, but that again it won't be too significant.
Looking ahead...
The only significant econ-data next week is retail sales on Wednesday. Aside from that, it will be somewhat quiet in terms of data.
What should greatly concern the bears is that we have 4 of 5 days being POMO fuelled. Valentines day is a big one, with around 5bn being thrown to the primary dealers.
see: POMO schedule - NY Fed
The much touted retracement - not least also sought by yours truly, has failed to occur, could it really be still a few months away? With continued POMO dollars seemingly likely for months to come, its going to be so difficult for this market to rollover..even a little.
back on Monday