More Signs Of The End...

FUNDAMENTAL ANALYSIS
Stocks rallied today after last Thursday's huge gain following a rise in existing home sales, more signs that this crisis is coming to an end. The Dow rose 187.32 points today as we start seeing magma coming forth on this coming bull eruption. So, let's take stock of all the Signs Of The End so far:

1. Fed bailout of BSC is demostration of their resolve not to allow the financial system to sink.

2. Existing home sales rising suggests possible start of the bottom in housing market.

3. Extremely steep bond yield curve suggests that smart money needs to move back into value stocks soon.

4. GDP has not gone negative despite all these talk (lets see what it does this Thursday. See economic calendar.)

There are definitely a lot less uncertainty by now than when this crisis started months ago and by the time the smoke clears, the bulls would already be ringing the register.

TECHNICAL ANALYSIS
This is one of those times when my technical analysis does paint a slightly different picture than my fundamental analysis. The follow up today happened on extremely weak volume and such a big rally on such weak volume only spells one thing... bull exhaustion. I also have the major indices at the top of their respective regression channels, so, unless we see a strong break these couple of days, we could see another visit of the Jan lows. The 12750 resistance level on the Dow still stands and has yet to be tested. So, I would need to see a test of that level before I am 100% convinced that the eruption has begun.