Today’s clear, impulsive bust-out above the past couple weeks’ 3151-to-3158-area resistance reaffirms and reinstates the secular bull trend and exposes further and possibly extraordinary gains straight away. This resumed strength leaves smaller- and larger-degree corrective lows in its wake at 3137 and 3069, respectively, that now serve as our new short- and longer-term risk parameters to an aggressive bullish policy and exposure.
This breakout exposes an area totally devoid of any technical levels of merit above the market. In effect, there is no resistance.
The trend is up on all scales and expected to continue and possibly accelerate with a failure below these recent corrective lows and risk parameters required to defer or threaten a bullish count. Former 3158-to-3151-area resistance would be expected to hold as new support per any broader bullish count.
Still reinforcing our long-term bullish count is the fact that the huddled masses continue to doubt the clear and present bull. Indeed, both the Bullish Consensus (marketvane.net) and the AAII Survey have been fluttering around historically LOW levels, typical of the ENDS of major corrections, DESPITE the fact that the market has maintained its major but simple uptrend pattern of higher highs and higher lows. We believe this will ultimately mean accelerated gains somewhere along the line when these investors will have no choice but to chase bullish exposure at much higher and less efficient levels.
In sum, a full and aggressive bullish policy remains advised a failure below 3137 required for shorter-term traders to move to the sidelines and commensurately larger-degree weakness below 3069 still required for long-term players to take defensive measures. In lieu of such weakness, further and possibly accelerated gains straight away are expected.