Today the DJIA continue to move to a new high by closing at 12,042, 1.8 points above previous session’s close. But the other market indices failed to follow the DJIA to close at a new high. The SP500 closed down 3.56 at 1304.03, the Nasdaq closed down 3.86 at 2321.09, the DJ Transportation is nearly 200 points below its previous peak, and the Russell 2000 is little more than 10 points below its previous high. In addition, the number of declining stocks is more than the advancing stocks. These divergences are a sign of a weakening market. Unless these divergences resolve themselves in the coming trading sessions, I will get ready to move to the sideline.
DJIA:
SP500:
Nasdaq 100:
DJT:
Russell 2000:
NYSE Advance/Decline:
