Markets have been making a habit this past week of overcoming early weakness and finish firm, classic bullish behavior. Perhaps their are an abundance of market participants looking for the pullback that just may not develop. If you erase, that ugly outside day one week ago today, the benchmark charts do not look so bad. The S&P 500 and Nasdaq’s decline last week were halted at their 50 day SMAs. The missing component has been the lack of powerful breakouts, but they are gradually coming back. Today TGT blasted through a double bottom pivot of 64.60 on very healthy trade. UNM moved upward through a 24.96 cup with handle trigger. To put some long term statistical perspective on the markets, Sam Stovall pointed out last week that stat when markets advance in both January and February, it happened 26 times since World War II, markets advanced the remainder of the year EVERY time. Some yearly gains were very robust. These type of headlines usually give me pause. Am I getting pollyannish here? Absolutely not, but it is hard to ignore the traits of this current bullish tape. It can change instantaneously, but as long as Ben is the helicopter pilot, it does not pay to be on the sidelines. You can best believe the gas station attendants have become very familiar with Mr. Bernanke, refueling all the time with unlimited resources.
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