The Russell led the way higher with up opening followed by trend day up. Rotation marked the trading session with profit taking in RS leaders such as GILD, AAPL and TSLA, but good buying in oils, V, IBM and AMZN. Indexes have been on extended runs and only the 5 day moving average of the Trin is registering overbought signals. This is not one of the more reliable indicators these days though….
Thee Dow Jones Industrial Average just TOUCHED its all time high. (the previous push up to new highs was in the Dow futures). And of course the SPs continued to have lots of play around 2000.
Same theme persists: Extended runs can continue on for upwards of 24 closes on one side of a daily 5 period simple moving average. The first flush below this or close below still sets up a Buy. The 5 SMA is similar to the 120 minute EMA. There will be grail Buys on the first consolidation to this area. Currently in the SP it is at 1989.50 now. The day session gap area remains unfilled by just a few ticks. There is no overhead resistance in the SPs.
Ten year notes may be forming a Head and Sholders top on the 240 minute charts. There was a feeble upside breakout attempt from and OD/ID pattern that failed to lead to any range expansion up. Bonds may well be putting in a first lower high too. The daily EMA currently comes in at 139’17
3 day Holiday weekend coming up!
Roll to Dec Wheat.