My opinion of the market is often different from what happens in the market. My belief now is that the market has topped out and that while it might thrash about it will not make any new significant highs, and by saying that I have to leave the door open to a double topping situation.
That’s my current belief based on internal weaknesses in things like $NYSY, which is now well below the important 500 level. However, and regardless of my own personal opinion/s and or beliefs about the market, Mr. Market makes the decisions and sets the course and Mr. Market must be respected. If Mr. Market has decided that the rally deserves another leg up, then that’s what will happen.
With two days of rally, the market has now pushed into a short term overbought situation.
$TRIN closed at .46.
91% of today’s volume went into advancing issues.
$NYADV rose to 2484, when 2500 is the line in the sand for this indicator.
$NYDNV dropped to 63, when 150 generally indicates an overbought situation.
$NYAD, the daily, rose to 1946 when 1800 is the line in the sand.
Based on the above, we should have a more or less flat day tomorrow, but the cool reception GOOG is getting in the AH may be the key to tomorrow’s market action.