Index futures were being primed Monday night for a resumption of last week’s moderate uptrend. It was built for sustainability rather than speed, and that’s why those of us who have been hating everything about the stock market lately should be careful not to underestimate its potential. Its devious sponsors are clever, to put it mildly, and they have been very cautious about letting the short-covering bears who are driving it get too far ahead of themselves. My 2728 target for the E-mini S&Ps lies about 70 points above, implying a further Dow rally of perhaps 600-700 points is coming.

Concerning why we distrust this rally no matter how high it goes, here’s yet one more reason, from the latest edition of The Wall Street Journal: “Investors are increasing their cash holdings at the fastest pace in a decade, highlighting doubts about the durability of the stock market’s rebound in the first weeks of this year.”