I learned an important lesson this morning about the Elder impulse system - don't anticipate sell signals. Yesterday the bar was red all day, until a small rally at the close turned it blue (and I missed it because i idn't check it after the close). I probably wasn't alone - today had the feel of a short squeeze. The credit for the rally was the Bank of Japan going to ZIRP, dropping the yen and igniting a rally. However, the yen quickly reversed, the market didn't, leaving me with the conclusion that several bears got caught by yesterday's drop. We have now broken out through 1150, putting 1170 as the next immediate target, and my ultimate target of 1180 withing reach.
The TNX is fighting to stay above 24.50, but, as the Borg would say, "resistance is futile". The last gasps of the housing market may be drawing near, and Bernanke is throwing the kitchen sink at it, trying to save it. The problem is, when he fails, he takes us down with him,.
The global currency war may be starting. Look at the bright side: when the dollar goes to zero, the Dow will go to infinity.
I will have the new highs update shortly.