The Embrace

Today is the first day that investors are embracing the market. The breakout above the 200 day moving average will likely accelerate the process. While this is a necessary step in forming a top it is a process that could take some time. I suspect the rally will last at least until expiration. However, the turn of the month and quarter end are coming up so I would not be surprised to see a rally last through July 4 weekend. The caveat is that the economy is unbalanced and negative surprises are more likely to occur under these conditions.