dshort.com: The CNBC Indicator

Where is the Market Headed? Check the CNBC Indicator!
July 26, 2009

Where does the S&P 500 go from here? Why up, of course, or so says what I'll call the CNBC Indicator. Earlier this evening, the sidebar of the CNBC website was a full chorus bullish forecasts:

Beyond Dow 9,000: Pisani Sees New Bull Signs
Don't be fooled by the flat Dow and S&P Friday: The weak results from Microsoft and Amazon should have dropped the markets more – but today was a victory for the bulls.
Art Cashin: Dow 10,000 Possible Near-Term
Pros Say: A 'Good Time' to Buy Equities
S&P Headed Straight for 1,250: Strategist

Let's see.... The S&P 500 is up 44.7% in the 14 weeks since the March 9th low. This is the largest 14-week gain in the history of the S&P 500 since its origin on March 4, 1957. The second best rally of this duration was the charge off the secular bottom in 1982, which launched the greatest bull market in US history. So is it time to take some profits? Not if you believe the CNBC indicator.

Let's check back in a couple of months to see if the CNBC read on the market is a positive or a contrary indicator.