Stock Market -- Weekly

Fundamentals
The weekly cyclical fundamental indicator continues in a mild but volatile uptrend. The
volatility is traceable to initial unemployment claims date which, in turn, reflects the
interruption of business as usual by Hurricane Sandy. Effects of this shake up should be
about complete.

The Fed has accelerated the current round of QE. This remains a positive, but it should be
noted that the FOMC is running a bit low in implementation and also that Its balance sheet
has yet to exceed the all - times highs set in late 2011 / early 2012.

Technical
I am back to the weekly for the SPX. SPX Chart I did finally get a buy signal on the this
chart this week, a signal which has come late owing to the tame momentum of the advance
over the past three months (See ROC% in chart).

I did not play this rally because I have been trading only deep oversolds on the long side.
Based on the 40 wk price oscillator, rallies from very shallow oversolds have very seldom
been powerful through history, so I am reluctant to say this current but belated buy signal
will have that much "juice" on the upside. Rallies of the sort we have seen over the past
six months are typical of an advanced cyclical bull market.

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I am updating my SP 500 earnings models and will post on such one day next week along
with a longer term SPX chart.