We are at an interesting place in the stock market right now. Certainly bullish. We have been rallying without much pullback for several months. In fact, on a weekly basis, we have not had a down weekly close since the first of the year. It’s an impressive market.
We could be in for a down day tomorrow, however. Yesterday’s action gave us a lower low and a lower high on the day, along with a lower close. Volume was sustained. It’s the first time in a while that we have seen increasing daily volume and the market stall. It appears like the market is having a little difficulty making upward progress. We also see more intraday wave volume come in to the downside yesterday than we have seen in over a week (see 27K Tick Chart).
Of course, the market may simply shrug all this off and push higher. We are clearly in a bullish up trend. There is no doubt about that. But tomorrow I will be watching the trading around yesterday’s high. If we can’t hold that level (1405), odds favor a push back down to yesterday’s low and possibly lower.
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