Here We Are Once Again

The market has made its way back to a similar spot as it was on September 19 of this year. The Dow Jones Industrial Average (DJIA) made another new all time record closing high yesterday but with no other major market index made a new high along with it, just like it was on September 19. Although it is similar, but there are some differences as well. One thing that is different is on 9/19/2014 all the other major market indices closed with a loss while this time they all ended with a gain.

On the surface the market appears to be strengthening, but by inspecting closely on the various components of the market breadth, they show the market is getting weaker as it continues to move to higher level. Yesterday, the market sent a message telling its participants to be prepared for an extended pullback. As the DJIA is making new high while other market indices did not, it is a sign that money is moving into the stocks in the DJIA for safety, and that is usually a prelude of an extended market pullback.

Here are the charts highlighting some of the support levels to watch for various major market indices.

DJIA:
(click on the chart to enlarge)


DJT:


SPX:


NDX:


RUT: