There was almost hope for a correction today as we had a fairly nasty reversal off a morning up move, but that itself was reversed midday and up we went again. The SPX is getting quite overbought by RSI, but that alone is not going to be enough to stop this move up. Today we did get a whiff ov volume, but at this point I don;t know whether it came during the morning drop ofr the afternoon rally. The Elder impulse system has been green for about a week, and normally will not even hint at a trend change until we get a cluster of blue bars, and even that, as evidenced by the last couple of months, could just be another buying opportunity.
I didn't realize it at the time, but last week the Nasdaq passed it's 2007 high, and is now at a level not seen since 2000. Sp, are economic conditions better now than they were in 2007? I am no economist, but I sorely doubt it. AAPL is clearly the driver here, and they are worth something like 3 times what they were in 2007. It just shows you the value of slave labor in China.
The Russell 2000 may be running into some resistance here, and has gone to a blue bar. If this goes red, I would not be jumping into short positions, as false sell signals are typical of bull markets.
| Ticker | Relative Strength Index (14) |
| XLK | 79.38 |
| XLY | 75.77 |
| XLF | 73.49 |
| XLI | 72.48 |
| XLB | 70.34 |
| XLV | 67.37 |
| XLE | 64.91 |
| XLP | 59.19 |
| XLU | 54.08 |
Not much changed in the sectors. Overbought got more overbought, and laggards lagged even more.
XLK outperformed for the last 20 days, but over the last 4 months has not. So which is more signioficant? I would say the last 20 days.
XLU is trying to bottom here, and looks like it may succeed, but is still under performing and it is unlikely we are seeing big rotation into this. However, it would pay to be watching this, if it does start out poerforming that may give us a heads up for a correction.
Not much has changed. The Nasdaq and Russel have paused for a moment, but so far show no signs of stopping. There still is no hint of distribution, so I don't expect the big money boys to pull the rug out from under the little guy any time soon.
I will have the new highs update shortly.
