As if you needed any more proof that this bull market since the financial crisis has been almost entirely fed driven, check out this chart from esteemed technician Tom McClellan illustrating the relationship between the feds balance sheet of mortgage backed securities and treasury bills and the S&P 500.
He explains the chart in more depth on CNBC here http://video.cnbc.com/gallery/?video=3000288767
The Feds planning on ending QE in October. The summer grind is taking it's toll on bears big time but we could see some serious volatility if not an outright crash when the QE music stops. I'm staying the course with a mixed portfolio of longs and shorts. If it starts dropping fast this fall, I would be inclined to drop the longs as this rally is long in the tooth.
R. J. Sullivan IV