25 APR 2010, Sunday

• Well...they shrugged off that Goldman shock from last Friday continuing upward to make new highs.  The lift in this market is something to see.  Last time we had 8 straight up weekly closes was NOV 2003-JAN 2004.  Then the market went sideways in a 10% range for most of the year until the fall. 
• Made it to the 61.8% Fibonaccic retracement (SP 1228...brown line on weekly) where the 200 week moving average is.  Also, it is the bottom of a 2008 congestion area that formed just prior to the collapse.  Will be interesting to see how it handles that broad price band.  
• Time to rest or is it on a mission?
• Sentiment by the newsletter writers has gotten very bullish which can be a contrary indicator...but not precise in timing because it can stay that way for awhile.
• Then there is always the magazine cover as contrary indicator...below, the Barrons bull splat cover came out 9 MAR 2009 (the bottom basically).  This week a bear splat cover.  Will it have similar implications?  The timing is often uncanny...time will tell.
• It is still going up!  Again...as for me, I don't like the risk for the return potential.  Many indicators are once again at levels that have signalled for caution in the past.  So, I listen to them and play defensively.