A Collective Disgust

Most professional market watchers have abject contempt for this tape.  This is not how things are “supposed” to work.  Elasticity has been completely removed from the broad indicies and the relentless grind higher has steamrolled every bear out there.  For better or for worse, this is the market we have to work with.

Everyone who was going to call this intermediate market top has chimed in, made their call, and been wrong.  Along the way, the bears have repeatedly suffered from group-think with regards to key resistance points.  1250 seemed like a nice round number.  Turned out to be a hiccup.  What about 1280 – 1287?  Gone.  Remember 1300?  Toast.  I’ve thrown around some ideas regarding market weakness in the 1310 – 1330 area and it seems that the same group think is creeping in at that level too.  You know what that makes me think?  It makes me think I may be wrong about the 1330 level.

What if the top of your chart was not the top of your chart?  What if there was no optical illusion of price action contained within the little box inside your monitor?  Would it be much of a stretch to see this chart extend to the blue line?

Trade with a mind that is prepared for multiple outcomes.  I remain cautious at these levels but the risk is clearly to the upside.  I have a feeling that those anticipating an inflection point here may be disappointed.

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