Recently, this market has had every reason to go down, but has continued its upward momentum. Since March 9th, the market is up 50%. That is a historically big climb. We have seen stocks in the financial sector go up over 200% and 300% in months. These are the old stoggy companies where a 15% yearly gain is generally great news. What has fundamentally changed since March 9th? Not much. It's been only 5 months. Credit card defaults are still rising and Americans are still losing jobs.
Historically, 'V' shaped rallies always turn into 'W''s before a good rally. Expect a pullback to at least S&P 950 before jumping in if you believe the market is bullish. This morning, the market will pull back sharply. If it recovers by the end of the day, that will be an extremely bullish sign that the market uptrend should continue, however, all three recent levels of support have been broken this morning.