S&P Continues Higher

Saying that I'm frustrated that the market keeps floating higher despite me saying it's topping the past few days would be an understatement. But the market likes to slap me around from time to time. This rally looks very impressive and strong as far as price goes, but internally it's not the same picture. I've laid out some of those details in previous posts. Today's rally had mediocre sized volume but it was mostly all to the upside with over 81% of NYSE volume going to the upside. Yesterday's failure to gather momentum on that modest drop and then rally into the close was a good sign that we'd get continuation of the rally today. The fact that 81% of the volume today was to the upside may mean we will still push higher. Unfortunately I can't take a position either way right now as I see the market topping anytime but have no confirmation to get short, and I see no evidence to get long at the moment. So even though this has made me miss getting long this rally up to this point, I still have to stick with my trading plan and stay out until I can get a clearer picture of the market.

What might be of interest is that pretty much all of the major indices have made new highs on the year except the Dow Industrials. If the market were to reverse and turn down while this divergence remains in place, it would be very bearish. But the Dow is quite close to making a new high, and if it does so then it will put all the major indices in line for a very healthy rise with no end in sight. So I plan to wait and see how the market reacts in the coming days to see if I can get enough evidence for a bias to take a position.


PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.