Where to Now ?

With the base established in the stock markets we are entering a more tricky phase.  In spite of all that has happened this year, exuberent stock buyers are still everywhere.  This means that short term technical indicators will get very frothy on each upthrust.  Furthermore the probability of reaching our earler bounce objective of 1460 is looking less and less probable. Too much energy is being used in the process. On the S&P 500, we are now trying to breakthrough the resistance around the 1335 area, 1375 looks like a 90 percent event, and 1425 a 66 percent event over the next six weeks.  So, buy dips in stocks, sell rallys in gold, bonds, commodities until this phase plays out.