From Tim Wood's market wrap up on Financial Sense on-line.....
...... Bull market breakout? No, just as the reconfirmation of the Secondary Trend suggests, this is a continuation of the rally separating Phase I form Phase II of the Dow theory secular bear market that began in 2000. This advance has been unprecedented given the technical backdrop in which it has occurred. No doubt about that! But, one thing that hasn’t changed is the meaning and end result of this data. It takes buying for an advance to continue and the buying is shrinking as can be seen by this breadth indicator. Furthermore, no amount of liquidity can fix the shrinking breadth data, and this should be obvious as we all know that the liquidity pump has been in high gear, yet breadth has been contracting for over 2 years. Yes, this entire 2004 to present act of levitation is a direct result of liquidity. At some point, the lack of breadth will override the liquidity factor and that’s when the greased pig will once again be out of his cage. Until such time, this levitation act continues with another level now being added to this mammoth house of cards. ......
Full article appears at http://www.financialsense.com/Market/wrapup.htm
