The tape action in the short term is looking very bullish to me. I made a case a some time ago that there could still be a strong bullish case for the markets. This continues to appear to be the case and now appears to be the favored scenario.
It could very well be that we see the market print new highs into the end of this year. That may be a stretch, but I have had the suspicion for a long time that the whole Euro disaster situation was simply another distraction in an on going bull market in force since March of 2009.
One of the biggest clues that the disaster scenario was not working in the sp500 was the lack of ability of the USA markets to collapse when we already saw many European indices almost literally collapse. The USA performed quite well in the face of all the negativity and now is zooming to the upside again.
It is still true that the sp500 only managed a 38 % retracement once again from the March 2009 lows which is a sign of strength. The bears should have been able to damage the market more, especially in the seasonally weak period of September and early October…
It is still a bull market and the election cycle positives seem to be living up to the historical reputation.