Just take a look at S&P 500 chart (click on image to see bigger picture). It looks so good!
Index is mostly holding above 50 days moving average (MA50) since April. Every violation of MA50 was a huge buying opportunity. Lately, index trades mostly above 13 days moving average. Every time it touches MA13, is a buying opportunity as well. How long can it last? I'm sticking my head here: we are going up again. Technicals are just too good. Take a look at another chart, which is much more important (click on image for bigger picture):
S&P finally resolved long term triangle formation, made up by downtrend from October 2007 and uptrend from March 2009. Triangle is broken up, it's incredibly bullish.
Technicals are great, what about other metrics? Well, fundamentals still suck. Of course, we might see some improvement in current earnings season. Sentiment: my unscientific metric (CNBC guests plus authors I read) is mostly bearish.
So, we have very bullish technicals, so-so fundamentals and bearish sentiment, which, being contrarian indicator, points up. Two of three up.
Up we go!