This one goes out to all the right minded shorts who are wrong about the tape. Keep fighting the good fight but there's no need to be a hero right now. Unfortunately for the bears (I have been one of them) the market grows technically stronger each day. The market flies in the face of a long term downtrend and dismal economic news that is continuously spun positive by the media. The government seems willing to do anything and everything to boost the market and its working. With the technicals improving as they are, I think its not the time to be a hero on the short side. I think this rally is about murdering shorts, don't be amongst the dead.
Here's a weekly S&P 500 chart, there are a lot of bullish signals and divergences there. The steep sloping downtrend that began in September 2008 has broken along with the key 800 level. There a pretty monster failed breakdown of the 800 area there on the weekly! I could see this market rallying up to the 200 dma and/or resistance at about 950. Just about the only obviously bearish quality to this chart in the intermediate term is the declining volume during this recent rally. The move looks like a text book bear flag but that's not to say that the market can't keep plowing higher on declining volume. I will be traveling for the next week, so don't expect much posting. Cheers!
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