Thursday, January 22, 2015

The Bull Roars....01.22.15

After a little stumble out of the gate this morning the markets were buoyed by an expanded ECB QE program and climbed steadily throughout the day thereafter.
Bull market runs are typically led by QQQ and XLF and both issues were the top leaders in our market benchmark VEGA model (below),
In addition, the XIV (inverse VIX ETN) is finally coming back into sync with its expected beta performance realtive to SPY and this should be regarded as another positive for the bull case.
Per the SPY TrendX chart, right side panel, SPY still has good prospects for more gains before hitting upper resistance levels....unless some bad news derails the run.