There are some warning signs that the current thrust has reached its top and we should chop around and correct and then repeat. The first is our Zweig:
We would like the NYSE A/D Zweig indicator to move above that 60 line. It is at the level where the last thrust broke down now. Another leg down on this indicator today would indicate that the top is in place..
The 10 Day Hi-Lo charts are showing some weakness in here.
The SP500 10 day Highs-Lows has weakened enough to curl the 5 DMA over which has been flagging the start of horizontal consolidation that has led to pullbacks. We need to monitor that today.
52 Week highs:
52 Week highs need to pile in today in order to keep the bull thrust alive. This right now is our most positive indicator. If you are live in the trading room with us today we will update you. If you can not be live with us today then follow Redsdata at twitter.com for live new high data every 30 minutes. Watch the D5 number.. it needs to stay positive all day today as does the D1 number. If this gap open holds through this mornings econ news there should be a good push out of the gate.
Hope to see you in the room.
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