Yesterday’s action was not expected, but not surprising either given our current market environment. Low volume rallies have been the norm for the market and especially at new highs. The market was able to shrug off the selling pressure after the FOMC announcement to close at new highs on Thursday. Fueled by a better than expected jobless claims figure and POMO traders took the market into the highs of the session up until close. This market is an untamable beast and the longer you can hold onto this bull the better off you are. Dow 15,000 is quite a milestone and with the FOMC willing to continue to pump $85,000,000,000 a month there isn’t reason to think we can’t continue to print more new highs.
There continues to be disparity between the II sentiment survey and the AAII survey. II bulls continue to dominate bears in the survey while AAII Bulls edge out their bull conterparts. AAII survey is favoring neutrality than anything else. NAAIM managers have positioned themselves to be bullish for this market and while one could jump to think this is a countrarion sell signal it isn’t. We remain below extreme levels on the bullish side typically seen with market tops. We can point to high margin levels, but for now sentiment isn’t at an extreme to mark a possible top.
Let’s see how we close this market up. More to come after the bell so stay tuned!
