In the intraday, the NYA tagged its all time closing high of 11,112.11 by moving to a high of 11,123.62. The Russell 2000 moved up to a new all time high of 1,271.74 during the session. As it turns out, the market was not ready for these two indices to enter the record book. Early on the session, the market shows lack of breadth, especially the UVOL. As the day progresses, the market drifted lower and the NYA reversed with a negative close by losing -55.92 and closed at 11,056.76. Similarly, for the Russell 2000, it drifted lower and was only able to close with a small gain at 1,265.59, +0.81.
As the chart shows, today’s candle printed by the NYA could lead to some pullback. This pullback could result in retesting the pivot high near 10,869 or near the rising trendline.
(click on the chart to enlarge)
For the Russell 2000, it printed a graveyard doji like candle, and this could lead to a pullback toward the supporting rising trendline near the March pivot high at 1,242.62.
What the market has revealed today is the closing high for the Russell 2000 probably have not been made, and if the rest of the market follows the Russell 2000, then look for new high from the other major market indices.
The market will never tell us when it will do what it is about to do. Therefore, just keep listening to the market and not the naysayers or the talking heads. These people just talk, and do not put their money where their mouth is! It might be entertaining to listen or to read what these talking heads have conjured up with their imaginations, but you are putting your money on the line, so be cautious and be defensive!
