In my yesterday’s post “Dow Theory signals a new primary bullmarket in gold and silver miners” I said that the markets seemed to be “smelling” more liquidity coming. Thus, I wrote:
The market is clearly telling us that the tide was turning already by the end of June in favor of more liquidity
In my opinion the market seems to say that liquidity will lift all boats. Definitely, it is not a market to short.
You can find the whole post here
Today the markets, and more specially, the S&P have confirmed that liquidity is coming and in spades.
From a Dow Theory perspective, both the Industrials and the S&P have bettered their previous recorded highs:
Industrials: 13034.35 on 08/17/2012
SPY (proxy for the S&P): 142.18 on 08/17/2012
Here you have an updated chart that explains what has been happening since the inception of the primary bull market movement.
|New Highs under Dow Theory suggest continuation of the bull market|