Stock Market Update

Tonight I'm posting a chart of the Dow with just my Frye Indicator. It shows that a market can stay overbought for sometime. All indicators including the money flow show still some more room for this one to run. Today was 72% volume up day for the NYSE and around 65% of all the stocks on the NYSE are above their respective 200 moving averages. The moving average statistics shows that the market still has ample room to roam upward. You will have to go back to 2003/2004 to see this stat above 90%. I have a feeling the smaller traded volume on the Dow has to do more with GM and one other stock getting the boot from the index than anything else at this point. I still see the market moving up over the next day or two. Be careful there are divergences in the Dow, Transports and S&P 500 compared to the NASDAQ which has made new highs. I still believe if we move past 9,100 on the Dow with strong volume we will for sure be in a new bull market ... all indexes will need to confirm.

This will tell the tale over the weeks to come. Will the Dollar rebound or will the printing of this new money drive the value to new lows? I almost will guarantee over time if the government keeps the printing presses going we will have a new currency by 2020 or 2025. At any rate if the dollar rebounds upwards then this should put a cap on commodities for a while and a lid on the current stock rally.