The dynamic on the chart is the short term potential double bottom "W" and the developing intermediate H&S distribution top.
A pullback of 4% with a move to a higher high is supportive of the 'new bull market' scenario and we would expect the media cheerleaders and paid market strategists to hit the pom poms hard if the Street can make this happen.
Volumes are light enough. But we also sense a growing cynicism and distrust of the US financial markets in traders and investors. There is a recognition that the game is rigged, and the 'house' is skimming a larger piece of the daily liquidity thanks to government money and new technology.
This 'skim' may destroy a game while enriching the house, as all seasoned casino operators know. It is not clear to us that the Wall Street crowd can practice this sort of longer term restraint.
