My Gut

To me, these daily grinds are mostly noise at this point. But if I had to guess, this uptrend culminates around 950. Based on what I see in the oscillators, I think we have one more good move up- then watch out below. So many of the metrics I follow are coiling to jump higher (bearish), otherwise they would have broken down by now. Whether it is the gold/silver ratio, the gold/S&P ratio, the Yen or the Dollar; they all look primed to break out to new highs. And those critical component leaders of the equity markets, the BKX and the Transports, look ready to tip toe to new lows. Because the equity markets are trapped in an adverse feedback loop, it does help to look at the previous tape for any parallels. Granted this fall was extreme, but I do not think volatility will revert to the mean any time soon.

It does look like the treasury market is starting to crack. Another leg added to the mother-of-all-adverse-feedback-loops.

This bear started with a correction in housing- that led to a correction in the stock market - which further corrected the housing market - which further corrected the stock market - which eventually corrected commodities - which eventually crashed the stock market - which eventually crashed the housing market - which eventually crashed the commodities market - which led to a bailed-out nation - which led to a crash in the treasuries market - which led to the end of life as we know it.

Rinse, repeat.

But hey, Jim Cramer is bullish on stocks here, yeah baby!