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Is Better Economic Reporting Killing the Market?

|Includes: SPDR S&P 500 Trust ETF (SPY)

In my previous article,5 Reasons Why This Market Still Has Upside Potential , I commented that the S&P500 had reached a PE of 26 based on 10 year average earns during the 1930 rally so there was significant upside (potentially 1350) in the market even though it is overvalued.  At that time I pulled off my leveraged market shorts to stay out of the way of any sudden break upwards as the baked in earnings surprises were revealed.
All the news has been as positive as it could be with 80% of companies exceeding earning estimates and revenue losses coming in at only (!!!) -17.5% instead the   -24.8% that had been projected on October 1 (Thomson Reuters) but the market has gone down instead of up and technicians are worried that negative technical signals are forming.  The market drop instead of a gain so far today with GDP at 3.5% instead of 3.2%, positive Chicago PMI and positive (somewhat) consumer sentiment makes me think that the market is not going to move much higher even if earnings get better.
A big difference from the Great Depression is that we have lots of economic reports that did not exist in 1930.  Many reports, such as GDP and Personal Income, started in 1929 so there was little history and trust in the reports so valuations continued upward until they reach very high levels.
Today, most of the data out there supports the fact that the market is overvalued at current levels.  Even bulls seem to think that a 15% pullback is expected.
Based on the inability of the market to go higher on what is really pretty good news, I am going aggressively short again.   I expect that the market will decline a bit more, stage a small rally to form a classic head and shoulders technical pattern and then head for the floor.  If this happens before xmas, it could get ugly as funds look to lock in profits. 

Of course, it might start to go up fast but unless something unexpected happens I'm going to keep my positions on and ride out the "pain of the short".  There is a  lot more downside than upside from here.

Disclosure:  Short Market