Dow vs NDX this week
I was impressed by the "Dow Industrial" strength so I went back to check what happened the last time it broke a new all time high in the summer 2007: when it broke the former all time high of 11750 of January 2000 the Dow marched 417 points higher for 17 trading days before a small 200 points correction (which did not retest the previous all time high)...the first real correction came only a couple of months later and starting from 1000 points higher....I do not think this is the same situation....the Dow is already 300 points above the breakout level with no corrections and I can't imagine 700 more points to go before correcting, I think the correction is closer yet I do not want to mess with indexes printing all time highs because the market can remain irrational more than I can remain solvent.
Dow Industrial breakout of October 2007
SPY: For a live chart go to the technical charts section of this blog
This manipulated and doped market stinks and I still can't find a single reason (technical or fundamental) to buy it but before shorting it we must wait for cycles to complete their course (the price action will reveal it).
As I have posted ealier I am restyling WSW blog with new colors, a new layout and new sections: I have also added a technical charts section with live realtime charts of DIA (Dow Jones Industrials Average ETF) and SPY (SPX500 ETF)with my wave count and a set of useful technical and cyclical indicators.
Hope you like it! Feedback is welcome.
Have a nice weekend!