Today, S&P500 equity index broke above the resistance level of 955 area it touched almost 2 months ago. The 1010-1015 level is the target now. Before we move into next target area the market should consolidate, probably down to 960 area.
However, there are fundamentals that will make some pain in the future:
1. The impossible fiscal equation should be solved, and taxes will be raised
2. The final consumer demand should still re-emerge
3. Corporates are beating earnings estimates just because of even sharper cost cuts, among others quite brutally on the employment side... This has been a good policy for an individual company or industry/sector in the past. However, but not in the case, if the entire market is doing just that. The effects will be the same like the global competitive devaluations.
But who thinks long-term?
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