The market had another big up day today. The Dow Jones Industrial index made a new closing high off the March 2009 low. If this momentum continues, I will not be surprise to see the DJI reach 10,500, which is the measured move from the weekly bull flag pattern formed in July. But, with the broader market indices such as the SP500, NYA and the DJT failed to confirm the DJI new high, this raises doubt on the extent of this rally.
Until some of these broader market indices confirm DJI’s higher high, I would rather miss this leg of the rally than get fooled by getting trapped long near the top.
Here are the updated charts, click on it to get a larger view:
DJIA:
DJT:
SP500:
NYSE Composite:
Nasdaq 100:
