Today the DJI closed with another new all time high at 14,673.50 while the other major market indices such as the SP500, DJT, Nasdaq 100, and the Russell 2000 failed to follow suit. This put the market back into the traditional pattern where the DJI is the last index to make a new high (top out). Unless a market index other than the DJI makes a new high all by itself in the near future and before the market reverse direction, then today’s market price actions clearly show the market is not acting any different this time than previous market cycles.
Today’s DJI closing high is the second non-confirmed Dow Theory high within a week. The longer the DJI stayed elevated in non-confirmed new high territory, the more vulnerable it is to an abrupt major price reversal. In order to avoid being trapped from the potential market reversal, exercise tight stop and do not chase price move. Stick to your trading plan and abide to your stops.
Here is a chart of the closing prices for the market indices. Click on the chart to get an enlarged view.
