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| SPY May 17 2013 |
Market shrugged off some very mild weakness on Thursday that, as usual, just invited in a wave of buying. There evidently is a great deal of money sitting on the sidelines, waiting for any kind of pullback to justify putting it into the market. The technicals are all looking about as good as they have throughout this rally, and there is no evidence of over-extension or buyer exhaustion.
Note that the top of the old channel has been breached, and that breach was confirmed today. This leads to a new, more parabolic channel forming. This is Bullish, but the risks of course increase as the upward move loses restraint. A blow-off top is coming, but it isn't here yet. Trying to anticipate it is fine, but don't get so wrapped up in what eventually must come that you forget to reap profits when the reaping is good. That would be like not going to sleep because you know the dawn eventually will come. All things in their proper time.
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