“I think a lot of people will say the markets formed a double low and we have some technical indicators that are going to turn positive, so we could rally around 1,250, but as I said before, for me, we reached a high on May 2, 2011. 1,370 on the S&P–that we will not go through. My view is you have a lot of people with strategies that are very bullish. They have a yearend target of around 1,400-1,450 on the S&P. Then you have the super bear. I think both camps will be disappointed.”
Marc Faber told Bloomberg today that the S&P was poised for a rally off the lows. While Marc is generally (and normally) bearish, he (like me) concedes that stocks are not expensive, especially when compared to bonds.