Hope Is In The Air

Google earnings have injected a fresh dose of la-la.

European leaders are posing for group photos to project unity and consensus as French bonds sink and spreads widen.

Meanwhile the EU prepares to ask the IMF for help as the IMF prepares to ask emerging markets for help.

As you might expect, futures are up over 1% this morning. Hope is in the air.

The higher this market goes, the worse the destruction will be . . . sooner for the shorts and later for the bulls. But only the market will decide when.

I was quite encouraged by yesterday's action. Today, however, puts much of yesterday into question. And maybe that's a good thing.

For one thing, as dramatic as the action was from 1220.25, it never even got to the 23.6% retracement at the 1186 area. So technically, it remains strong.

That means, yes, 1230.71 is still in the cards. But don't expect it to be an easy ride. If it is, great. But if it shakes the tree down to that 1186 area, or just below, don't run for the hills just yet.

Just realize the market's job is to fool the most amount of people the most amount of time.