Monday likely to be narrow range tiny down day setting up for another move higher.
The steady rise of the market this year is a sign of strength. This is the way a market should act (whether bullish or bearish).
This steady move is causing complacency which can be seen by the continuous drop of the VIX as fear leaves the market setting the stage for a fast and furious drop that will catch many unaware if it takes place. Fear is good because it keeps traders on alert. But too much or too little is a problem. So be on you toes.
The US economy AS A WHOLE is gaining momentum as evident by the economic data over the past few months and Friday's job data. I know folks (political/permanent perma-bears and politicians) will take it and try to spin it every way possible to make it look bad. The numbers though far from perfect are good numbers. No one should expect perfection in the first place. The trend (up) is what matters at this time. As with any data, there will ALWAYS be weak spots (every industry and sector cannot perform the same). But the doom and gloom folks will prefer talking about what they wanna hear (bad news), which is silly because: (1) The stock market makes that decision long before the numbers are released because it is a leading indicator. So, unless the market reverses, we are going to see more good numbers. (2)EVERY data will have weak spots. (3) The market determines what is good or bad base on current and future price action regardless of what anyone thinks. I wonder why folks even bother debating the obvious. A bad data cannot be good and a good data cannot be bad (call a spade a spade). Let the Consensus, Actual and Revisions make that determination based on the current environment as is always the case.
While momentum seems to be picking up, European debt talk and geopolitical events (e.g Middle East crisis) remain a serious treat to the market AT THE MOMENT and cannot be ignored. Things can change very fast for the global economy and stock market. So the bulls CANNOT be complacent or comfortable but just take it a step at a time till. I believe the next market reversal will be a scary one and not just a pullback. I hope I'm wrong.
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