A lot of technical damage was done today... or so it may seem. The Nasdaq slightly eeked out new highs, so did the Russell 2000. The Russell made a new high at 666. If my memory is correct, I remember seeing this number somewhere exactly 1 year ago.
The wave count is being pushed to its limit. Yes, I know wave 2 may retrace 100% of wave 1, and go back to 1150 on the SPX. But I have a feeling that if we get any where near 1150, the buyers will pile on and push it here. For me, this is the exact limit.
Even though the Nasdaq made a new high today, it is still considered a double top.
Despite such a bullish day today, there are still some bearish signs out there. There is a huge intra-market divergence now. New highs for Nasdaq and Russell, but no new high for the SPX or Dow, and no new low on the VIX. And on a day where most major indices were up well over 1%, the Dow Transports were up less than 1%. There is a lot of non-confirmation out there.
And most importnantly... I don't think any of the bears expected a day like this today. A lot of bears may have "thrown in the towel" and closed their shorts today. With us closing on such a bullish note, there doesn't seem to be a seller in sight. Maybe this is what the market needs. No sellers. The market likes to go where it has to with the least amount of people as possible on board. I mean, if everyone was always positioned for the markets next move, we probably wouldn't be here right now.
Let's see what happens next week. I will try and post another video this weekend if I find time. If not, I will just post a market update.
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