The current leg of the rally would equal the previous leg from the November 7th low at 1787.88. Above that is 1800, a round number target. Above that is a 161.8% Fib extension at 1829.17.
What is amazing is that by using the VIX as a short proxy rather than inverse ETFs or index puts (which were never filled due to the market's inability to reach new highs on the days I thought it would), I have a very small position with a slight gain as of yesterday's close. By seeing how the market acts over the next few trading days, I will decide whether to accumulate more or pause or switch strikes and expirations.
At current levels, there are a variety of ominous signs: the McClellan Oscillator is exhibiting a remarkable negative divergence, stronger than I've seen at any time. The % of the S&P above the 50-day moving average is showing a nearly identical divergence. A/Ds are too.
Still, the pattern is in charge, and so is momentum and psychology. And right now the market is feeding on it.
Lady Gaga continues to feed on something too, but decidedly less rosy, and now the critics are noticing. A New York Post entertainment reporter blasted her new album, saying she should "focus less on stunts and more on music." The album itself was referred to as a "huge anticlimax."
All of this interests me from a socionomic perspective. Gaga recently wore a flying dress at her "Art Rave" promotion, and has just announced she'll be singing in space -- she confirmed she will sing from a Virgin Galactic spaceship in 2015.
That's if she still has an audience by then.
By having her stardom attached to a very dubious expansion largely fueled by unprecedented stimulus efforts of central bankers working in concert throughout the world, don't be surprised if a fan revolt presages a collapse of the house of cards.
In other words, the market itself is set up for a huge anticlimax, most probably when it figures out that even Janet Yellen isn't perfect.
At current levels, there are a variety of ominous signs: the McClellan Oscillator is exhibiting a remarkable negative divergence, stronger than I've seen at any time. The % of the S&P above the 50-day moving average is showing a nearly identical divergence. A/Ds are too.
Still, the pattern is in charge, and so is momentum and psychology. And right now the market is feeding on it.
Lady Gaga continues to feed on something too, but decidedly less rosy, and now the critics are noticing. A New York Post entertainment reporter blasted her new album, saying she should "focus less on stunts and more on music." The album itself was referred to as a "huge anticlimax."
All of this interests me from a socionomic perspective. Gaga recently wore a flying dress at her "Art Rave" promotion, and has just announced she'll be singing in space -- she confirmed she will sing from a Virgin Galactic spaceship in 2015.
That's if she still has an audience by then.
By having her stardom attached to a very dubious expansion largely fueled by unprecedented stimulus efforts of central bankers working in concert throughout the world, don't be surprised if a fan revolt presages a collapse of the house of cards.
In other words, the market itself is set up for a huge anticlimax, most probably when it figures out that even Janet Yellen isn't perfect.
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