Today the NASDAQ finally closed over 2,000 and took out its November highs. This is the first close above 2,000 since January of 2002. It’s hard to argue with the price action in the indices. About the only thing that I don’t like is the fact that this NASDAQ high is on lighter volume than the previous highs. The NASDAQ’s On Balance Volume is still showing a bearish divergence.

The Dow and S&P 500 continued their walk up their rising upper Bollinger Bands. Neither of these indices are showing the same divergence in OBV. The market remains in melt-up mode, with very few sellers to be found. I’m still loath to buy anything other than intraday momentum plays for day trades. (Although I am holding on to a couple of steel stocks… for the moment.)

Also, I’m not a Fibonacci follower, but Charles notes that the NASDAQ is sitting at a Fibonacci retracement level.

Edit to add: I should note that OBV on the QQQ looks great and is confirming its new high. So maybe the NASDAQ Composite is just an abberation.