The Dow continues to close at record-breaking highs, above 13,000, while the S&P 500 and NASDAQ Composite are making new 6 years highs. Can we go higher? Our canaries - the big banks ($BKX), broker/dealers ($XBD), and housing ($HGX), continue to lag, though the brokers are looking better lately and are testing their 2007 highs set in January.
The QQQQ and IWM have bearish megaphone patterns, that show up very well on the weekly charts. Also, the CCI on the QQQQ is in a very overbought condition, above the +200 line. The same is true for DIA and SPY (not shown). It is rare for the weekly CCI to be so overbought. On the dailies, the QQQQ has a weakening Chaikin Osc, and we will be watching that trend line on the CCI. The daily IWM is looking stronger.
News: our Forum is open: http://glorytrades.com/forum/
