It seems like no one bothered to look in the rear view mirror yesterday as the major indexes rallied on and broke two important psychological levels. The S&P; 500 managed to close above 1,000 for the first time since November 4th and the Nasdaq above 2,000, a level which it has not reached since October 1.
This now brings the S&P;’s gain for the year to just over 11%. You might be interested in knowing that the S&P; 500 is still 24% below the level of our Sell signal from 6/23/08. That means this bull needs more legs just to get to the breakeven point of last year.
Nevertheless, the current strength in the market is impressive, although I have some doubts as to its duration. Be that as it may, we try to participate in the current run with caution and always prepared to make changes to our invested positions should the need arise.