I think we are seeing a pattern emerging in the equity markets between QE bailouts and stock market growth (if you so wish to call it). Whether we all think technical analysis is a useful tool or not, in this case it certainly yields intriguing results. Below is the Market Value of Equities Outstanding for Nonfinancial Business graph (kind of like the dollar value of nonfinancial corporate America).
|Financialization's new drug: quantitative easing.|
There looks to be a $17 trillion to $17.2 trillion upper resistance level for 2013-2014. It almost looks as though the current QE-propped bubble will reach its peak sometime in 2015. I don't actually have such a negative outlook that far in the future (other than some commodity prices decreasing), but I do believe ESRI's recession call is looking good for 2013.