It’s not rocket science. This market is going bullish. Whether it is a short and final push higher or a big break of consolidation, the market chose to break out of its short-term trend lines. This puts pressure on the bears, which I assume there are a lot of out there, given the angst of the last year.
The S&P 500 and its Amigos have broken the short-term trend lines.
This of course follows the suddenly and not surprisingly bullish Semiconductor sector. Here’s how some broader market items look on the weekly view. Tranny is the only one that can be considered still at resistance. In essence, if the market beats the April highs then it goes bullish, for however long the thrust lasts. If it’s a wave 5 (to the entire cyclical bull market), it could go higher than we might imagine. Contact your local EW technician for details.
Or if this somehow makes you feel bearish you can use me as a contrary indicator, because I am not seeing it. As far as the Fed and its puny rate hikes are concerned, that is irrelevant. This market is flipping them the bird. Markets can rise a long way before a rate hike regime finally kills them. It feels like inflation folks.
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