Today’s DJIA record close is what one would call it an “unconfirmed” closing high. What this mean is the DJIA closed at record level without a Dow Theory confirmation. Furthermore, it closed at a record high without any other major market index closing at a record level. In some of my past blog posts, I have written about how the DJIA is the last to top. Today, the DJIA is the only one at the top.
This record close do not necessary mean the market has topped, it only alerts us the market has reached a turning point where there can be some volatile downward movements. This turning point tells us a change in the recent prevailing direction has occurred, and it is time for market participants to be very cautious and defensive, and to be reminded that cash is a position.
Below is the chart of all the major market indexes. The red arrows on the chart point to the record closing high made by the indexes (except for the NASDAQ 100, the arrow point to the multi-years closing high.)
(click on the chart to enlarge)
