Both weekly technicals and fundamentals are creeping, slouching toward positive. And therein
lies the main concern. Market rallies with a good degree of staying power rarely have such
humble beginnings. Breadth is clearly supportive, but volume and momentum are not. It appears
that few players want to give up on it as they did during the price corrections of 2010 and 2011
and this is likely because folks do not want to be caught off base if the Fed unveils a substantive
new QE program. I have always found trying to divine the collective psyche of the Fed to be an
exercise that rarely bares fruit, and my reading of reports by others reveals considerable
uncertainty about what the Fed might unveil, if anything. I have been on the sidelines for a
couple of months now and remain there. SPX Weekly Chart
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