http://stockcharts.com/freecharts/pnf.php?c=%24INDU,PWTADANRBO[PA][D][F1!3!!!2!20]

The PnF chart of the INDU pretty much expresses the market situation.  A long period of sideways chop has given way to a breakout, and the system looks for a target of 24099.  The technical base is certainly there, and if the Congress changes its recalcitrance to cooperation the economic circumstances will be there.  They could have done this 6 years ago but then that illegitimate president in the White House might have got some of the credit.  No No Nanette.

The INDU pictures the situation more clearly than the SPX because the SPX has sectors within it which are in downtrends, and are not present in the INDU.  This presents the opportunity of natural hedging which we will address in a soon to be released letter.

The Food Bank

Each year at Thanksgiving and Christmas we make a donation to our local food bank.  You can do the same at this link http://www.feedingamerica.org/food–banks‎.  The idea of kids going hungry, especially at this time of year, drives us nuts.  Making a donation allievates these feelings somewhat.

http://stockcharts.com/freecharts/pnf.php?c=%24SPX,PWTADANRBO[PA][D][F1!3!!!2!20]

Nonetheless, even with some weak sectors, the SPX has a target of  2639.  We think these targets are imminently feasible.