Breadth was 3.8:1, with decliners over advancers, but the volume was light.
Also the DOW transports have yet to make a new high, to confirm a new bullish trend.
The Omen, 102 new highs, and 5 new lows.
Here are some of the reasons I believe that there might be a couple of days of upside left, before a sell-off begins, and more reasons why I am not Bullish!!
I hate to disagree, but in my mind the trend is not bullish, The Russell, which has been the leading index is NOT in a bullish trend.
Where has the Russell gone in the last two months?
Down 5%, since making its high. The Russell is a very important index to watch, it is composed of the small cap, high beta stocks that investors love to buy when the risk/reward is on their side. Investors have been selling out of the risker stocks looking for cover in the blue chips because the reward is no longer worth the risk, that is why the DOW and then the SPX have made new highs, investors looking for safety. This is not the sign of a healthy Bull market when major indexes are out of sync and investors are running to safety.
Right now the only way to make money in this market is to trade it, and that is not much better then just sitting in cash and waiting for the market to give a CLEAR signal of the long-term trend.
For me, going long at this point is not the brightest thing to do. The market has no rewards (where has it gone in the last two months?), and way to much risk to be Bullish.
I see more downside potential, then upside, at this point, the Bulls are unable to keep pushing it higher as evidenced by declining volume, and lack of any meaningful upwards price action in the last two months. Sooner or later the bears will get the momentum to push it down.
So if you want to be Bullish, that is fine with me.
I still see a couple more days of up trend possible, before it starts selling off again.
The Elliott wave counts are so out of whack, I am not even spending much time on trying to figure them out, they will become clearer as the markets come together after completing this topping process.
FWIW, long TZA(and in the green)