SPX climbs to our 1st bullish short term target above the SMA 200 and is in the process of negating the very bullish potential of an inverted H&S that would have required a decline to perhaps 750-800 to form the right side shoulder before continuation of a more substantial rally. Oh well, hope has not the time for such things.The ratio of junk bond fund HYG to mid term treasury fund IEF (lower panel) only serves to highlight the idea that some very unhealthy speculators have taken over the markets. The upper target just above 1000 is open on SPX and this could be achieved, possibly in conjunction with the BKX finally hitting its SMA 200, while sporting a bearish divergence to the market. Then it would be time to turn out the lights for a while -- or go short, in my opinion. Alternatively, this could end at any time now in an over bought, hope fueled flame out.
