That may describe the mentality of stock index futures traders, as the Dow Jones futures surged to an all-time high yesterday afternoon. The rally in the U.S. stock market comes despite prediction from leading experts that the chances of the U.S falling into a recession remain 50/50, and talk from leading fund managers that the Fed has not yet restored confidence in the U.S. credit market. The U.S. housing market is stilled marred in a slump, with a report out this morning expecting to show that pending home sales fell to the lowest levels since the index has been calculated starting in 2001. So why are investors enamored with stocks again? Well, one reason might be the changing focus by Federal Reserve to prevent a slowing of the U.S economy from being an inflation fighter. The 50 basis point rate cut in September signaled that the Fed is willing to tolerate some moderate increase in inflation to prevent a recession in the U.S. This gave traders the confidence to move assets back into the stock market, especially multi-national blue chips, as the belief that the Fed will continue with its “accommodative” stance and keep interest rates low for the foreseeable future. Whether this tactic works and prevents a rapid slowdown of the U.S. economy or just fuels another speculative “bubble” in securities is still unknown, but for stock index bulls, “let the good times begin!”

Looking at the daily chart for the December mini-Dow futures, we notice traders still in a buying mood after yesterday’s record setting session. Prices are well above all the major moving averages, and momentum remains strong. The 14-day RSI is now in moderately overbought territory, with a current reading of 81.67. Yesterday’s highs of 14198 will act as resistance, with support found at 13782. In early trade, December mini-Dow Jones futures are trading at 14166, up 9.

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