The DJIA made new all time high twice last week. The first was on Wednesday, then followed with a big down day and a sudden reverse on Friday to regain all the Thursday losses and closed with another new all time high. The SP500 followed the DJIA and closed with a new all time high as well. Although the other market indices; DJT, NDX and RUT had a nice big green day, but not enough to push these indices into new high territory. All these market indices failed to confirm neither the Wednesday nor the Thursday new high put in by DJIA & SP500.
A close inspection of the market breadth reveals internal weakness. As each successive higher high, less and less number of stocks participated in pushing the market higher. Unless the participants broaden and the other indices follow the DJIA & SP500 into new high territory, any new high should be taken with skepticism and be weary of getting fooled.
Some possible levels where the indices and their respective ETF might encounter resistance and support are discussed in the follow video.
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Correction: The NDX all time high mentioned in the video should be correctly stated as 52 week high.
Disclosure: Long PSQ and RWM.
