Online Stock Trading | Dow Jones Industrials closes at an all time high as NASDAQ notches its 4th distribution day

Dow Jones Industrials closes at an all time high as NASDAQ notches its 4th distribution day


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Stocks were slightly higher in the morning as a tame inflation data appeased Wall Street. CPI YoY came in at 2.6%, although higher than the FOMC’s comfort level but below previous readings. The NASDAQ couldn’t hold the morning gains after lunch time. By the end of the day the NASDAQ was down 21.15 pts or .83% on 12% higher volume than the previous day. One bright spot, the Dow Jones Industrial average closing at another all time hight. One caveat, the index closed at 13,383.84 when the index eclipsed 13,480.00 level. Closing almost 100 points off its high, not exactly the welcoming action in an index hitting an all time high.

Divergence and more of it, the NASDAQ the index that was pulling the market from the 3/21 follow through day has lagged significantly. Its relative strength line to the S&P 500 has hit a 6 month low and it has 4 distribution days in 4 weeks. Although we aren’t in eminent danger we must be cautious with our positions. For EX. ALGT and EDU come to mind. RNIN is still holding just below its 50dma, volume was lighter than the previous test of the 50dma so I would still hold. But, again money management must take prescedent over blind jubliation about the stock market.

Happy Trading
Aloha,
Market Speculator

marketspeculator@gmail.com

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