Everything on the hourly chart for the Dow is overbought ... same story. One item to note ... the tick data ... the indicator right below the price chart looks to have cycled down some and looks to be headed back up ... I looked at the money flow for DIA hourly chart and it has topped. Any weakness and I would buy the dip.
Before I did any shorting of the market I would wait for the blue line on the daily chart to cycle back up to the top ... as you can see it is down at the cycle bottom. This does not mean that price can move sideways or weaken somewhat while the blue line moves back up. I do believe the decline will be shallow. It is possible we could see another 2,000 to 3,000 more points on the Dow by years end. On Friday's trading we had a 79% up volume day with close to $1.7 billion of cash inflow into the market. I do believe we will see some kind of weakness before moving onto major new highs for the year.
The dollar finally looks to have put in A bottom ... I don't know if it is THE bottom. If this keeps up ... this should put a lid on crude oil and gold for a while.
Volume seems to me moving up ... this means more are participating in the market making new highs. I like to see this ... rather than new highs on lower volume.
I just wanted to point out that the S&P 500 % Bullish has reached a new high for the year ... the last time it was this high was in the summer of 2007 before the bear market began.
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