We haven’t said much about China lately and that peaked back in February after the spring festival in a place where the square root of the high was 49.44 and the range for the move up was 495 points. How do you like that symmetry? It’s now 55 days off the bottom and we’ll see really soon if it’s an inversion high. These kinds of symmetries at the high are tough to violate.
Also, we need to watch the DAX because it stalled at the end of the week at a key resistance on the gap down.
Since Europe has been leading since Christmas this piece of GPS could be very important to what can happen here. If the bears think they have any shot at taking down the market this week I think we almost certainly have to see this chart drop. If it doesn’t it’s a given we’ll see a new all-time high in the Dow.
While we’ve remained focused on the events on Capitol Hill, the good economic news suggests we indeed are in a new secular bull market although it’s the very earliest stages. Since markets have been hovering around highs for the past 6 months it only stands to reason the economic data had to get better. After all, the stock market is still the best leading economic indicator.