WEDGE WAS BROKEN BUT NOW WHAT?

CARL SWENLIN LINK TO DECISION POINT

It looks from the AM futures that the underside of channel break will be tested near 1100, IMHO a close back into channel would be another sign of market technical strength.

The weak 6 months of mkt wasn't so, will the coming best 6 months hold to form? WILL XMAS RETAIL SURPRISE TO UPSIDE?

Remember 2009 will be compared to WEAK 2008 yr/yr sales.

Remeber a LOT of good news is baked in, what is the current wall of worry?

Gold at $1,111 this AM, US $ in danger of falling out of control.

We have bought the rally, but it is detatched from mainstreet reality, that can happen with liquidity SPLURGE. GOLD to new record highs you would think would have Central bankers worried, but again they have been FIGHTING FOR INFLATION, is gold a signal of inflation?

Stock market obviously liked the employee head count reduction, shares will sometimes react well to bad numbers but when it sees action is taken, reduced head count means better chance for profits. In MOST cases we are not seeing a RISE IN REVENUES/SALES....remember many companies are MULTI NATIONAL and with weak dollar their sales will appear stronger than they actually are.

Economy cannot stand on own 2 feet, will it soon? BUT I ASK YOU isn't the key JOBS? to be able to expand credit and Bank loans, we need to expand workforce.

With all the JOB LOSSES you would think the worst of cutting is long over, but even when that is true, the hiring phase can take MUCH longer than most think.

WILL THE FED QE come to end in MArch as promised? WHEN will market reflect that? WILL appetite for our debt/bonds remain HIGH?

WILL 30 year BOND BULL (declining rates) continue?

ALL MAJOR BEAR MARKETS ended with single digit SPX PE's and near 6% DIVIDEND YIELDS. AT bottom we were near 13 and 2% yield, NOW yield is 1.96% !!!!!

AS LONG as liquidity FLOWS Into stocks, NO SIGNIFICANT DECLINE CAN OCCUR.

The issue will be when that slows or ends.....will the small investor come piling back into stocks or has some generational change in behavior occurred?

Buying stocks that are OVER VALUED usually ends in tears.

BANKS HAVE HOARDING AFFLICTION LINK HERE Briefing.com story shows excess Bank Reserves......friends, YES market has record surge...but WE barely have a "PULSE"
Duratek