The great news for the future is that the news is getting better from an economic perspective. At least that's what the Government is telling us. We saw an improvement in new mortgage applications of 2.3% from last month. That was much better than expected. We also saw the ADP Jobs Report tell us that jobs increased at a much better pace than they expected by almost 100%. Manufacturing was also much better than expected. So while the market will take a hard hit lower soon it should set up some awesome plays for the future.
Weakness will be able to be bought. The news is so good on the economic front these days that it's preventing the market from falling in the immediate moment. Nasty futures recovered today on the good news. If the good news continues while the market is pulling back it should set up a fantastic opportunity to buy once again. So, although the immediate future isn't great for the market, the mid-term and longer-term still looks quite good.
The buying we are seeing is basically across the board, and that's very good news for this market. The financials are involved and that was an element that was missing for the longest time and was preventing the SPX from racing higher. It lagged badly behind the small caps and the Nasdaq. As long as the financials keep getting bailed out by QE2 and other fed Bernanke tricks they should perform well overall. This bodes very well for the market once we get through the upcoming pullback.
The volume trends there are really improving as well. Gold and Silver look vulnerable short-term, but the commodity world overall continues to do quite well. The market is performing the way a real bull market should with widespread buying just about everywhere you turn. If the buying was narrower, meaning fewer and fewer stocks participating on a daily basis, this would be a true red flag. But that's just not the case at all. For now the bigger picture bull market remains in place.