Just a short post this evening to tell you what you already know: the Dow hit a record high on July 12, 2007. We have been calling for new highs for a while now and this rally gives us something to watch for signs of termination--the market has now proceeded to move to new highs but they should be terminal.
The rally seems to be what we want to see, higher prices on modest volume. Buyers were there but sellers were holding back. 5 Day upside volume was not very high due to that large volume down day we saw just a couple of days ago. Plus, our momentum indicators didn't show much improvement which is not a bullish indication either.
This is a perfect situation for a top, technically and fundamentally, and we may, in fact, be just a day or so away. We will make a statement as soon as we feel the market is ready to go down. We may make it during the day so if you see a pop in the early going on one of the next few days or in the next few weeks, you may want to check in here to get your confirmation :-) (Then again, work might get in the way and we will have to wait until the normal post time.)
We wanted to alert you to the article that Erick mentioned in yesterday's comment section. We took a look at it and it is definitely worth a read so we are adding the site to the front page of the blog. Thanks, Erick.
"The greatest economic boom ever" from CNN Money.com FORTUNE Global 500