The following weekly price chart for various market indices give a good look at the big picture. The bullish message is emanating from the Dow Jones Transportation and the Russell 2000. The Russell 2000 is only 9 points from its all time closing high and less than 10 points from its all time high. Even with the recent rise in crude oil prices, the Dow Jones Transportation index is getting close to its 2007 high. All these are signs of a higher high for the Dow Jones Industrials, SP500, and the Nasdaq 100.
By no means that there isn’t any short term weakness to be on the lookout for. One obvious weakness is in the tech heavy Nasdaq 100. The Nasdaq 100 is being dragged down by the weakness in the semiconductor sector and the price action of AAPL. While these weaknesses being resolve, I remain to be bullish.
Russell 2000:
Dow Jones Transportation:
SP500:
Nasdaq 100:
DJI:
NYA:
