What's really left to say that I haven't said for quite some time now. Yes, the market has been ragged at times with many head fakes and whipsaw action, but the bulls have hung very tough, not allowing the bears to seize on things for very long. Every time it seems the bears have made some real progress, the bulls come in unexpectedly and turn things around in a hurry, not allowing the bears to feel they're gaining any confidence. The bulls have squashed all attempts and continue to do so. The bulls were able to recently take out key resistance at S&P 500 1597 and have now spent many days trading above this key resistance level now turned support. Today was another one of those bull-market days, even though the averages were mostly flat except for the Nasdaq.

Priceline Inc. (PCLN) had terrible earnings last night and was down thirty (30) dollars after hours. Pre-market this morning, it started down 20, or so, but opened green and then blasted higher all day. My point? Pure froth. Just the way it should be in a good environment. They warned on the next quarter yet the market rewarded them. That's classic bull market. In a bear market, they could have doubled next quarters expectations, but they would have been slaughtered. Now they warn and the market says great job on missing. We'll let you go much higher. That is a classic bull-market signal along with liquidity. Any news is good news. So today, although not much in terms of price action for the market, found a way to be bullish anyway.

Mr. Bernanke spoke this morning for quite some time. He spoke of the bad times, with regards to the financial crisis and how there's still many bad signs out there. He also said that he will remain on top of things. He will not let things go downhill. He will find ways to support the banking and financial system at all costs. If anyone is still wondering why we're in a bull market, all you had to do was listen to the conductor speak away with words that basically guaranteed no one needs to worry about more headaches that can take the world's financial system to its knees. He's there to help with his printing press folks, and with that type of guarantee behind it, how can you go wrong being in equities when interest rates are near zero! The only game in town is the stock market and he'll be sure to keep it that way for some time to come. When he thinks there are no longer any threats to the global-financial system he'll take the liquidity down. That's a long ways away. The market has the biggest buffer in the world. The bull lives because of it.Peace,

So yes, there are some red flags, or almost red flags, in terms of sentiment or overbought weekly charts, but that isn't terrible when the daily charts are not really overbought or flashing any major negative divergences. The 60-minute short-term charts also aren't terrible, but folks, we can pull back decently at any time and it wouldn't make things bearish. I'm often fascinated with how quick people are to declare the end of the world for the stock market on even the slightest bit of selling. What will people think if we sell 2-3% or 300-450 Dow points? Relax for now and keep your eye on S&P 500 1597. That's the breakout that the bulls will try to hold on any and all selling to come over time. Some long exposure is quite appropriate.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

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