The S&P500 moves to ‘all time highs’, which came after a rather rocky start to the new year. I’m sure many are wrong-footed again, but with the Fed change over, the start of the taper, and various other issues the bear case was understandable at least.

The technical read of the market is actually the best way to approach this market. The fundamentals are so distorted by the interventions of the last few years that they really provide little insight.

The problem of course is that the technicals are pretty stretched themselves and those are therefore prone to revision, of which the early call [if correct] gets you out with the most profit. It is difficult to call tops and bottoms. With no meaningful correction since May 2012, or really August 2011, of course market participants are getting twitchy.

For the moment, grit your teeth and go long. We have had the previous breakout retest and hold after a period of consolidation and this should represent the break to the next leg higher.