When there are certain cenarios politicians will allways try to save their asses and do the wrong thing. So my guess is that politicians again will create other QE3 and with that will lead to a rise on the markets. SP500 will short term to the 1260 mark and then let´s see what will happen. If market breaks 1260 and consolidate above we will see what we saw last 2 years a stronge rallie. If not is that because market will KILL QE3 and 2008 welcome back.
But for now a short term powerfull rallie is expected on the markets, so let´s buy today this market
Update: 11-08-2011 I am adding a chart of nasdaq100 where we can see that a MAJOR Short cover could occur if it breaks 2200 on the upside, because lot´s of short will be trapped again...
