There is something very funny about this stock rally.
Bernanke, king of zombies, announces that extended low interest rate policy will be in place until 2014.
The zombie king's re-animation project has not worked well so far despite 3 years of trying.
There are two indicators that show this rally does not have much left in its legs.
Notice the 9 day EMA is supporting this run up.
The RSI has breached the 70 level showing signs of market becoming overbought. Slow Stochastics has just started to fall from its lofty heights as %K has just crossed %D.
So certainly this rally could continue a wee bit longer, but is starting to look long in the tooth.
The 4 day EMA is chasing the day's candlestick outside the Keltner channel!
RSI has fallen well below the oversold 30 reading, and MACD has flatlined.
These indicators tell me more that the SPX ones do that we are overdue for a surge in volatility and a major correction in the S&P 500.
Once the correction shows up, in perhaps two to four weeks, what will the zombie king do for an encore?