Indexes Smell

Back on September 10th we wrote about the bears inability to establish a downtrend. A Fed that is easily fooled and a buyside machine currently meeting little resistance while flying the global growth flag has the bear thinking ugh. But this market behaves oddly. Much like the ' new economy ' reasoning leading up to the tech bubble, the global growth rationale seems to have the same bad smell. Whenever the market is in bed with surging commodity prices, which are often used as evidence as to the validity of global growth, one has to wonder how long this party will last. The DJI, SP500, and NQ100 have had manic action ranging from the depths of a supposed global credit crisis on August 16th, to new highs in two of the three indexes last week. Whatever joy the bull believes waits ahead may be short lived given the current market construct.