Recently I have been discussing the direct connection between the Federal Reserve's Q.E. program and the market as well as putting you, my dear reader, to the task of answering the inherent questions regarding the sustainability of the current rally.
Today's chart of the day looks at the market from a technical perspective. While there are a plethora of Wall Street analysts calling for much higher levels for the S&P 500; most of these calls are based simply on the belief that the current trajectory must continue indefinitely. While you certainly cannot "fight the Fed" the underlying fundamentals and economics that support the markets long term are not present for the party. What is very important to understand, and can be clearly seen in the chart below, is that despite repeated calls for "ever rising" stock markets in the past eventually left investors devastated. Markets do not, and cannot, continue indefinitely in one direction.
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