S&P Looking Strong

The sharp recovery of the S&P 500 last week provides that index with a strong start to a handle on a cup and handle pattern.

Over the past few weeks now we have been arguing that with bearish sentiment so high and the fact that everyone hates this market so much that now is the best time to be in the market for what has the potential to be a major bull trend.

If indeed the S&P breaks out of a cup and handle pattern here we could see prices rise over the next 6-18 months.

We will say it again. The media and market analysts don't talk about impending recessions at market tops. Put your tin foil conspiracy hats on when analyzing media comments about the stock market. Smart money needs an enthusiastic retail market to sell to at market tops. The media doesn't understand the market and they tend to report the news that is being fed them by smart money.

When the media starts cheerleading it will be time to start selling into the rallies. They haven't started yet.