No-Reason-Rally: Likely to Unwind

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Includes: DIA, SPY
by: Roger Nusbaum

Roger Nusbaum submits: I do not know whether the rally today is the Fed, some sort of short being stopped out, or something else -- but if there is no real reason for the rally you should not be surprised to see it unwind tomorrow.

Don't take this as talking my book: believe me I will be thrilled if the market goes higher and stays higher -- thrilled.

Rationally speaking I can't imagine cycles have been repealed, but shorter term the trends have been favorable overall regardless of today or tomorrow. I hope it sticks, I'm just not sure it can.