Could This Be It?

Eighteen months and 283.97 points ago, I wrote an article entitled "The Coming Market Meltup & 2016 Recession" in which I discussed several reasons for the market to enter into blowoff stage of the bull market advance. I gave several reasons at that time for such an outcome including the statistical probabilities surrounding the Decennial and Presidential election cycles. However, one of the primary drivers at that time was the ongoing Central Bank interventions. 

While the Federal Reserve has stepped away from inducing liquidity into the financial system, the ECB and Japan have taken over the foray which has driven capital into the U.S. markets seeking higher yields and returns. These actions remain supportive for equities in the near term and continue to drive asset prices higher even in the light of rather substantial risks.

I was reminded of that writing this morning as I reviewed the ongoing drama of Greece and their rather tiring charade of "debt chicken." In case you have existed on another dimmensional plane, here are the latest headlines that bring into focus what is currently transpiring.

You get the idea....Greece has become the poster child for the Navy acronym"S.N.A.F.U."

And yet, even with the threat of a potential systemic debt event on the horizon, stocks have continued to make advances as the "bullish bias" remains firmly intact.

As I discussed in this past weekend's missive:

"While the rally this week was nice, it failed to break back above resistance which it needs to do to reestablish the bullish trend. Currently, the markets have held the long-term bullish trend line that has remained intact since December of 2012 with two successful tests over the past month. That is bullish for now and indicates buyers are still in the market. However, there is a BATTLE being waged between the bulls and the bears as prices have continued to deteriorate from early-year highs. That battle should be resolved soon, and for now the bears have the advantage."

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Disclosure: The information contained in this article should not be construed as financial or investment advice on any subject matter. Streettalk Advisors, LLC expressly disclaims all liability in ...

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