The market is now in the midst of what can best be described as a bullish pullback, with a possibility of pulling back to about 1290, depending on how long it lasts. Volume shrunk ont he way down, and we did come well of the day's low, so it does appear we are still in good stead fpr a resumption of the up trend. You can see that the pivot points didn't have much effect this month: we got up above R2 before finally stalling. I still have ti investigate why the pivot points changed mid month, as they are calculated on the data from the previous calender month and supposedly do not change.
We continue to march slowly up on the weekly chart. Here the momentum indicators are still rising, and approaching last year's high is not out of the question. We betteer get better volume than we are getting now, however.
The Nasdaq is getting nominally better volume, and is starting to assert leadership again. This should be runnig into hellacious resistance right about now, but so far seems unfazed.
It may seem paradoxical, but when the Dow is relatively weak, that is usually a bullish indication, and right now it's relative strength over the past few months seems to be about over. This could be hitting a new high next week.
The transports are not only making a pretty good move, they are also getting volume.
The Russell 2000, which had been so weak for the better part of a year, is now kicking it into gear and is rising pretty fast. It still has a long way to go, but if it continues leading, it will go far. Unfortunately, "far" might not even get it to last year's high. That's how hard this got hit during the correction/bear market.
Despite bad economic numbers (GDP absolutely sucked today), or perhaps because of it, the market continues higher on the hopes of more "liquidity" (read "money printing", or more accurately, "credit printing"). It won't go on forever, but it might long enough to get the "right" people elected this November. But then again, maybe not.
I will have the new highs update shortly.
