Let’s take a trip down memory lane, shall we?

The date is March 9, 2009. The SPX has just closed at 672.88. The shills at Marketwatch, CNBC and other addresses in the so-called financial media were bumming big time. “We’re never going to have another up day” they moaned. The indices are going straight down to zero and then they’re going to keep going, just like Bernanke’s interest rate cuts, they postulated. The sky is falling they wailed.

Then the next day the SPX rocketed up 45 points and hasn’t looked back since.

Now fast forward to today. “Green shoots” , the same bozos shout, as if they are now master gardeners. “This is the new bull market” they crow “Hop on the bus, Gus!”

They were wrong then and they are wrong now. Today was the breakout day on the 200 day MAs for all of the major indices except Mr. Dow. One of two things is now going to happen and happen tomorrow. Mr. Dow is going to break the 200 day (it’s only 40 points away) and we’re going to keep running or we’re going to crash hard.

Hats off to Goldman. They’ve chased all the shorts out of the market. That’s really cool because now all the longs are going to get to see what happens when they buy into a market with a PE of 120 and no short interest.

I could be wrong. If I get my confirmation tomorrow at the close, I will admit it. If not, if we fail to hold the 200 days, look out below. No short interest…..this could get ugly. Very ugly.

-Z.X

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