Somewhat understandably, the cheer leaders on clown finance TV were pretty joyous this morning as the Nasdaq Comp' broke the giant psy' level of 5K. Yet... things really only get interesting with a monthly close in the 5200s. From there... 6K is easy.... then 7K... and... far beyond.
Nasdaq Comp', monthly, 20yr
As I have been noting for many months, 5K seemed a given.. and here we are... and its not even officially spring yet.
Whether the intra high of 5132 is broken this month, April... or a little later... should make little difference to those who are broadly long the US equity market.
For me.... a monthly close in the 5200s will be utterly decisive, and a clear warning of a viable hyper-bubble into 2017.
Tuesday will see very little. Yellen is due to speak.. but it will be on bank regulation, and I don't believe the market will consider it important.
Goodnight from London