Market actions defying a reasonable correction

Lately, markets were defying technical readings suggesting for a pull back for the last few weeks continuing to grind up. I, as well as many others who were looking for a pull back, have basically given up pouncing a pull back.

Until price action proves and shows a sign of a pull back; at this point, it is useless to note various technical readings suggesting for a pull back, such as as noted before:

1. overbought condition,
2. weakening price momentum,
3. negative divergences,
4. breadth overbought condition,
5. breadth negative divergences,
6. various fundamental factors for a pull back,
7. very low volatility readings, and other.

Markets are trading near at the resistances -- Qs 35, SPX 900, DOW 8500 -- after rallying 30-40%, and the Fed and the Gov along with mega funds can easily hype the financial markets to SPX 1000 as noted on

Thursday, March 26, 2009 8:07:25 PM ( post 14750)
Markets are now trading near at SPX 850 target. Breaking above it, the next target is SPX 1000 +/-.

Because of negative technical readings, I was looking for a meaningful pull back, nevertheless markets were continuing to grind up regardless all signs of a pull back.

Furthermore, I noticed a Bloomburg article on 4/30/09 that Abby Cohen called SPX 1000 within one year. Obviously markets are grinding up to get a fast return in addition to 30-40% from the SPX 666 low.

I do not recommend to jump on to markets at this time even though we now have many market hypers pouncing to buy the markets after markets have significantly rallied. Granted that markets can trade up to SPX 1000 +/- as noted in my March 26 post; however, as noted the negative factors above, it is better to reassess after a meaningful correction.