Bad news be damned, there's a party going on in Europe! Yup, seems the good ole USA and the Brits have conspired with the European Central Bank to "extend loans to European Banks to improve liquidity". Oh, SURE!! In other words....... a European TARP! More "happy juice" to put into the market and give us all a new sugar high. I can hear the machines now, printing more money......ooops, I mean making more "happy juice" for all the grown up kids to get high on. Yea, that'll work....... for a while.
What is it with these people. These financial leaders, experts, etc. Are they insane? No one...... not the US............ and certainly no one else in the world wants to face reality. We cannot keep spending more than we make. It's pretty simple really. Most families have to do it every week, every month, every year. Can you hear that Greece? Ireland? Italy? Portugal? Spain? Can you hear at all?
But I digress. The news got everyone in "PARTY MODE"! So the Dow went up 186 points. Yaaa-hoo to coin a phrase. And we have made it to the middle of the Bear Flag Channel. Yup, there's still a Bear Flag in full formation. Note yesterdays remarks......"headed toward the top of the channel" AND "Expect another weak up day tomorrow". Ok, so it wasn't really a weak up day! LOL
What is the chart telling us today? More of the same. It is still saying "Price is headed north ~ most likely to the 50 SMA at 11,700 before we turn tail and head south. But keep in mind that tomorrow is Friday, and many will not want to hold positions over the weekend. No, that's way too long with too many opportunities for market crazy news to develop. So unless we get more "happy juice" news from somewhere I'm not expecting much from tomorrows action.
CURRENT MARKET TRENDS
Long Term (Weekly Chart) - Sideways building a base and trying to break to the upside!
Medium Term (3 day chart) - Sideways with down bias, Bear Flag intact.
Short Term (Daily Chart) - Up, but that darned Bear Flag is intact here also.
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