The SP futures are climbing the trellis of a reflationary ramp on thin volumes.
Although we would not suggest stepping in front of it, and certainly not seriously shorting it until the trend is broken, nevertheless the move has all the feel of artificiality and will meet its test when earnings start coming out for Q2.
From what we have seen on the fundamentals of earnings, stocks seems very fully valued here, and would not be looking for a great deal of upside, particularly when the banks finish their price manipulation to support their equity offerings to pay back their TARP funds.
"There is something wonderful in seeing a wrong-headed majority assailed by truth." John Kenneth Galbraith
