Market Grinding Higher

The market continues to move into new high territory. The Dow Jones Transportation has been making new all time high for nine consecutive days, the SP500 has been making multi-year high for the last eight trading sessions, and the Dow Jones Industrial has been closing higher for six consecutive days and making new 52 weeks high. The small cap Russell 2000 also been making all time high. The only index that have not been making new 52 week high is the Nasdaq 100, and it is primary being weighted down by the weakness in AAPL.

As the market making consecutive new high, one should not be surprised if the market pulls back before its next upward move. But it would be unwarranted to expect anything more than a pullback at this time. The message from the market is continue to wait for DJI to make a new all time high, and then watch for signs on where the market will likely headed. Until then, keep an eye on the Dow Jones Transportation.

Here is a chart showing the advance-decline line continues to rise as the SP500 makes new multi-year high. In addition, the new high-new low has not contracted.

(click on chart to enlarge)