Geez, just when I thought we had reached the top, we passed it today. 1356 has now fallen, and my original target of 1378 is now back in play. Once again, this most recent drop was long enough to wrok off a little bit of overbought conditions, but not enough to be a decent buying opportunity. MACD still looks a little toppy, but it can actaully drop and have price still go up (not by much, though). Stochastics almost started to drop, but are now headed back up. Volume was not bad today, slightly lower than yesterday. All in all, it looks like the bears have punted.
In a slightly conflicting condition, we have dropping stochastics but rising MACD on the Nasdaq 100. While we did not get baove yesterday's gap up high, it is a new high close, and on higher volume. There is not mjuch hope of a pullback here.
The NYSE composite is quite a bit weaker than the Nasdaq 100, a condition which is bullish. Not much else you can say about this.
I said we were due for a pullback in the percentage of stocks above the 50dma. See that little dip we had last week? That was it. It actually looks like it might be headed higher again. The good news for the bears is it can't go higher than 100. What is really amazing is how that microscopic dip brought stochastics all the way down to 20, giving it lots of room to move up.
The same indicator on the Nasdaq, which had been weaker (and still is on a relative basis), but this is gaining strength relative to the NYSE. It is now above the 70 level for longer than I remember seeing it in the last 10 years, and barring a major trend reversal in the market, won;t be below 70 for at least a couple of weeks. I think we are now in uncharted ground here.
This has to be the strongest, and most inexplicable, rally I have seen since the market came off the 2006 correction. It sure looks like it is getting tired, but it refuses to stop.
I will have the new highs update shortly.
