It will likely take the institutional money managers a few days yet to figure out where to take the market, and that will likely depend in large part on their take of the Fed's continued loose monetary policy. In the meantime, we still have a few retail bulls who are buying on the new year's "feel good" and/or "got to be invested" trade, not to mention new 401K money that has to be invested. Those buying at these levels, except for short term trades, will yet again be the bag holders, IMHO. With the S&P at historically high P/E ratios, how long can they maintain the charade with 4Q earnings that start being reported in ~ a week? Remember, 70% of the economy is consumer spending, and only so much can be squeezed out by cost cutting or inflated by Government spending (i.e. robbing Peter to pay Paul) and eventually continued lackluster consumer spending will take its inevitable toll on the revenue numbers. How many of you, your neighbors, and/or friends are going on spending sprees and taking on more debt, especially for big ticket items? You had better be hanging on to every cent you can so you can send it all to Obama and his socialist cohorts when you get the bill for HC, Cap and Tax, and income taxes, since they know so much better than you how your money should be spent.
