Stocks are still rallying behind optimism for continued stimulus, and maybe this optimism is warranted. Certainly, we would hope that Dr. B still has bullets left to fire because we think the great “Man-Cession” which has morphed into “The War on Women” will continue for some time. Either way, according to a news release Americans have lost some 39% of their wealth since the start of the financial arse-raping that was the “financial crisis” (read organized banking takeover/power grab of the economy).
Nevertheless, the stock market is nearing those pre-2008 levels again. We think that $1350, $1375, and $1400 are support/resistance levels for the S&P 500 at current levels. We think that these levels will hold for now, but you never know we may see continued rallies based on Bernankulus money printing and the fear of more liquidity.