Is the market going to move to new highs?

Is the S&P 500 going to go through 1150? If so, it is likely to go much higher (click on the chart to enlarge it).

This is the great debate among strategists. Too much optimism as at the 2007 market top. The market is at a major top (this happens when there are too many optimists), according to Hulbert.

Pimco's amazing thinkers say the market cannot go anywhere (I am paraphrasing). Hussman is convincingly bearish. And then there is the CNBC crowd.

Fine. They make excellent points. Will the market rise above 1150? The advance decline line, the transport index, the bank index, and retail stocks already moved higher leaving the S&P 500 behind.

The point? Some very smart people say the market has no chances of rising. The markets are saying ..well.. that they are already soaring to new highs.

There is another concept I learned long time ago. Let the market tell you when the trend has changed.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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