Once again, the market continues to march higher. The DJIA closed at another new all time high at 14,662, up 89.2 points, and the SP500 also closed at a new all time high at 1570.25, up 8.08 points. But, the DJT closed down 75.26 points at 6087.04. This created another non-confirmed DJIA closing high. Under the Dow Theory, this non-confirmation indicates a reversal is coming. In addition to the DJT closing on a down note, the Russell 2000 also closed at 934.30, down 4.48 points. Furthermore, some of the market breadth indicators are also showing sign of weakness. All of these signs of weakness and divergence are telling us the market is in the topping process and caution should be applied.
The following video take a closer look at some of the market breadth indicators and the reason for closing the newly established long position on DIS during the after hour extended session.
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