Markets traded to targets: SPX 950 & DOW 8800

Markets traded to SPX 950 target today which is the target zone area of 930-
950.

* With the Jun 1 rally, markets are now trading well above the resistances which
I noted, during the last couple of weeks, as: SPX 930 +/-, DOW 8600 +/-, Nasdaq
1770 +/-, NYA 6000 +/-; as we can see the closing prices showing on the left.

* I commented on SPX 1000 +/- target since a break above 850 on 3/26/2009.
Even though I anticipated a meaningful pull back, markets have now showing a
pull back as we have seen a continuation of the recent trend.


* Profit taking: However, for short term, markets are very overbought and
showing negative divergences on most of breadth chart analysis. Therefore, so
short term, we will likely see a pull back as we have seen news on a couple of
large investors have cashed in profits which could be an early signal of a series
of profit taking to follow as the recent bullish sentiment can easily be a
contrarian indicator.

* Mid year cycle at the end of June 2009: As previously noted, a major mid year
cycle term date is next pivotal market juncture. The recent very short term
cycle pivot was, so far, to upside after a consolidation period, we have seen

* Intermediate targets are:
DOW 11000 +/-, Nasdaq 2200, QQQQ 44, NYA 8000, $BKX 77


Weekly Bullish Percent :

* Contrary to daily breadth actions which are
showing negative divergences, weekly breadth
actions are showing bullish price actions.

* Markets are very overbought as shown on the
weekly breadth actions.

* Market sentiment turned very bullish as markets
continue to trade higher even though fundamentals
do not show improvement as we do not see no job
growth.

* Even though daily breadth action is showing negative
divergences, weekly breadth action is very bullish as the
initial buy program in March low has turned markets very
bullish with trending markets during the last 3 months.