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Monday, June 10, 2013

No Follow Through Yet

The market seems to be encountering resistance right at the 50% retracement of the prvious pullback, so far not conducive to an extended rally. However, it is too early to tell if that resistance will hold, and the low volume today is a pretty good sign it won't for long. So far, it looks like we are near a green light for a new move up.

The Nasdaq had a comparatively good day today, another sign that the market is stronger than it looks right now. Watch for price relative to break out here: if it does, price will not be far behend, and this should start pulling the rest of the market with it.

The recent relative strength of the Dow industrials appears to be ending. That is bullish for the rest of the market.
The price relative on the Russell 2000 is also about to break out, and this has already broken  through the 50% retracement of the recent pullback. The Russell often telegraphs what the rest of the market is going to do, and if it is doing so now, then we are headed into another up trend.

I will have the new highs update shortly.

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