‘Money for nothing and the chicks are free.’ The renew vow from the Fed that it will never, ever allow stocks to go down has infused a rejuvenated sense of euphoria in investors. In two days we have gone from worrying about potential support levels to focusing on resistance. At the moment, the upper boundaries of the indices long term uptrends are 19162 and 2071---which means the S&P is a short hair away from another challenge. Let’s see how they handle these resistance areas; but given the current magnitude of jigginess, the odds of a break seem reasonable.
It seems almost useless to attempt to analyze fundamental developments and their potential impact on stock valuation, because nothing else matters but investor faith in an endlessly easy Fed.