On 6/9/2015, as the DJIA closed at a new pivot low, there was divergence amongst other major market indices. This was the first indication of an end to the recent pullback. The second indication was on 6/15/2015 when the DJIA made a new corrective intraday low with improving market breadth, such as the Advance/Decline made a higher low. Finally, the DJIA made a higher high on 6/18/2015 as it closed above the 6/11/2015 close and a higher low from the 6/15/2015 close. These recent technical behaviors from the market indicate a new upward move has started and the all time high for the DJIA could be in-play.
As always, expect the unexpected. The market will do what it will do and nothing is infallible. Although the technical picture has improved and presented a positive bias, but the market breadth strength is still relatively weak. Until the market breadth has regained its strength, trade defensively as the all time high is only a short distance from the current level.
(click on the chart to enlarge)
