Wednesday, October 21, 2009

Nasdaqs Lead Other Indices to New Highs, but Russell 2000 and XLF Lag

The major indices rallied to new highs, invalidating the previous 5th wave count I had. The dollar has declined severly this morning and I'm sure that's the main cause for the inflation in stock prices today. But the market should be up much higher with the good earnings reports and the severely weaked dollar, but it's not. Is this a signal of an exhausting uptrend. I believe so.

To add, the Russell 2000 and XLF did not make new highs with the major indices today, creating a bearish divergence at this point.

More later.

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