Well, geez, yesterday it sure looked like we were due for a correction, but the market didn't cooperate today, making another pretty big move on higher volume. We are still below the previous high, which right now probably means nothing as that has not really established itself as a resistance level. We do, however, have weakening technical indicators, so a correction, however minor, is still in the cards.
The Nasdaq 100, on the other hand, does seem to be having some resistance up here. It's technical indicators are still slightly stronger, but still weakening.. We may be looking at a correction after all.
The NYSE composite is substantially weaker. While this represents a much larger percentage of market cap than the Nasdaq, when this lags it is usually bullish. That means any correction we get here will most likely be short, not very big, and leading to another pretty good move up.
I waited 2 hours after the close for these to update, and they still are not updated, so I don't know what this did today, but overall, you can see that the short term trend is down. It is still well above the 75 level, and I won't be even remotely bearish until this drops below that level.
About a week and a half ago, we saw the Nasdaq starting to lag a little, and here it is now shoing weakness again. Here, too, the short term trend is down, and I suspect we will have a break of 70 within a week. However, that really doesn't tell us much about how big a correction we will have, and it could easily reverse just as quickly.
Well, it sure would be nice if I had something insightful to say about today's market, but I;m really irritated with stockcharts.com. It seems like it keeps getting longer for their charts to get updated; pretty soon I might have to wait until 3 am to get the charts.
I will have the new highs update shortly.
