You know, the market almost had me believing it had hit a wall and was beginning a correction, but within a couple of hours it was pretty clear that this was another of a long, long line of morning drop- afternoon rally days. The SPX damn near got even, and to add further salt in the bears' wounds, the volume was very low. Absolutely no one is in any hurry to bail out of this market, and it's hard to blame them: normally we need about 4-6 days of solid distribution to start any panic, and theere just isn't any distribution in sight. CMF, already at nosebleed levels, has actually begun to
rise again. ATR refuses to move up, and an overbought RSI refuses to move down. Complacency reigns.
Despite a pause in the rapid rise of price relative, all seems well on the Nasdaq as well. This trailed slightly all day, but here, too, volume was too light to really mean anything. If you are looking for any bearish signs here, don't bither, there aren't any.
Not here, wither. Despite the lagging Nasdaq today, the Dow industrials also lagged, which is bullish for the market.
At least you can say one thing about the Russell. It may be slamming up against resistance here, if that top line is indeed resistance. At this point I won't bet that it is.
The bears lost an opportunity to force the market down, at the very least to get a decent entry point. Judging by the volume, we have probably seent he last of the short squeezes and now we will be looking for signs of selling into strength. So far, I have seen none.
I will have the new highs update shortly.
