"Still Drinkin' Happy Juice" or "Beware the Bear"

Despite the lack of really good news the market keeps moving up on hopes and dreams.  We need some concrete good news to sustain a nice market rally.  And so far there is none.   And this plays right into the Bear Flag possibility.  I won't bore you with a complete review of the news.  I'm sure you have kept up with all the shenanigans lately.  Right?  Awww, come on, you know.....

The Geither gambit.  Really?  Really!?  What was he thinking??

UBS whining about a rogue trader, as if that hasn't happened to them a half dozen times before.  Hey, you guys at the helm, wake up, pay attention!! Stop screwing around.  Ohhhhhh, it was okay when he made you money, but it's not okay now that he has lost money.  Hmmmmmm.  I think I heard a UBS exec say in a whiney voice "But I want to eat my cake and have it too!"

The talk about a Eurobank TALF

Michigan Consumer Sentiment (it sucked but hey, better than expected, so isn't that ok?  Yea.....SURE!)

The ratings cuts to France's primary financial institutions, Societe Generale and Credit Agricole.

Italy and talk of China helping them out.  (Soon China will own everybody!  Mark my words they are winning the financial war.)

Jobless claims totaled 428,000, which exceeded the 410,000 expected.

Empire State Manufacturing Survey - down again.

See, all that good news and inuendo!!  No wonder the market went up this week.  (He said sarcastically while scratching his head).  And there are some people that think bad news is good news.  Why.  Well it will  bring Uncle Ben to the podium to annouce a QE3.  Hmmmmmm.  Really?  REALLY!?

Lucky for us, we are technical traders first and foremost.  So despite all the rhetoric we were prepared for the upside and we got it.  Have another cigar and some more Happy Juice!

The CHARTS:  The DIA is still in a Bear Flag formation, as is the SPY and the QQQ.  Yes, the SPY and the QQQ do look like they could break out of formation and move up, but that is unlikely at this junture.  As indicated on the chart look for more upside next week  And always be ready for that nasty Bear to show his ugly head.  First resistance is at the 50 day SMA.  If it manages to break over the 50 SMA, next stop the top of the Bear Flag channel at about 119.  My money is on a reversal at the 50 SMA.  Just waitin' for the right catalyst to cause the move.

Here's the CHART and the Trends

CURRENT MARKET TRENDS
Long Term (Weekly Chart)  -  Sideways building a base and trying to break to the upside!
Medium Term (3 day chart) - Sideways, but unable to break over the 20 MA
Short Term (Daily Chart) - Up, but remember the Bear Flag!!