18 October 2009
Despite a host of concerns (weak economy, high unemployment, mounting foreclosures, geopolitical issues, etc.), the Dow made another post-crash high today. While the recent string of new rally highs is significant, it should be noted that the Dow is currently testing resistance (see red line).
Liquidity is still abundant and flowing to investing asset classes more than to the real economy. The dichotomy between the real economy and equity markets is widening.