Today was a great day for the bulls. There was solid buying all day long and all of the major indices hit new multi-year highs. Volume was solid for a change, which is just want I want to see when the market's pushing to new highs.
The Dow continued to lead the way higher with a 1.05% gain on the day. After a bit of back & forth across 13,000 this morning buyers took the upper hand and almost pushed it to 13,100. The Dow is starting to go parabolic and that rarely ends well. Some backing and filling would be healthy for it in the near future.
The S&P chart looks a lot like the Dow. It has its own round number of 1,500 just above.
The Nasdaq has now joined the S&P and Dow by making new 2007 highs.
Small caps are clearly bringing up the rear. The Russell barely notched a new 2007 high today.
No changes.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
"The Dow is starting to go parabolic and that rarely ends well."
Agreed. I was thinking the same, but about the SPY (something I generally day trade (out by 4 PM)). I'd love to see a pullback on the markets in general. An reasonable, organized pullback and not something like we saw in late February.
I think SPY is due for a pullback as well. Like Mike said, it's really pushing against the top of the upper Bollinger and things don't seem to end well for any equity when that happens.
I'd have to imagine there's a psychological barrier to the 150(SPY)\1500($SPX) that might scare some people away. But like 13,000, I'm sure people will come to realize it's just a number and bulls will bust through it.
I woudn't be that surprised to see 148 or maybe even 147 before we see 150. But then again, 155 by the end of May, the way this market is going, wouldn't really surprise me either. OBV, MACD, and the 10 and 50 days are all strong bullish. Who knows for sure. Either way it's a great ride.