Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The market continues to chug along. Rather than pulling back in any material way, it churns sideways and then step ladders up. The only exception to this was that breakdown 2 weeks ago – which of course led to a light volume, V shaped rally which have been the trademark of rallies the past 3 years. After breakout of over the 1380 level, marking 2011 highs, the market hit the next marker – 1404 (a weekly high from 2008) and has been hovering around that level the past few sessions. Things are so strong, the market is not pulling back to the 10 day moving average, but marking time until it ‘catches up’ with the index itself.
I saw on another blog the QQQ ETF is up for 11 weeks in a row; the first time that has happened since the 1999 bubble. It remains a very atypical type of environment.
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