Any chance of a real correction coming got pretty well dashed today, and it is now clear that last week's dip was due to the market being overbought, which got worked off for another thrust upward. Whether 1354 is a resistance level or not is yet to be seen, but so far I would say no. The market is showing few signs of topping (although there are some; for one, a bunch of small cap oil stocks took off today), and no signs of distribution (2 days on the SPX according to IBD, which I don't see). Having said that, I don't expect us to go a whole lot higher before we have a pretty decent correction, and I strongly suspect it will come sometime this month.
One thing that makes me suspect this is not the ultimate, or even a shrt term, top is that the Nasdaq hit a new high, and the price relative line has resumed it's up move. As long as this continues I think there is no chance of a correction. There is one distribution day here according to IBD, and I would guess they are talking about that day in late January that marked a very short term top.
The Russell 2000 is starting to falter a bit here, but not enough to really cause a panic. There was quite a drop in CMF since the beginning of this month, but I don't like to use ETFs to judge volume on indexes. So far, I am still bullish here.
The Dow industrials appear to have a resistance level at the previous high, but here I would not particularly sweat that either. The price relative line continues to drop, so it's pretty hard to be bearish here, either.
Once again the faint hopes of the bears have been dashed, but there may be "green shoots" coming for them. I saw a bunch of small cap oil stocks making big moves today, which usually comes when the market is certain we are about to see a spike in oil prices. While they may be wrong, they usually aren't, and moves in both oil and gold crap stocks usually comes just before market tops, so I will be monitoring that closely.
I will have the new highs update shortly.
