$INDU, $SPX AND $TRAN MAKE NEW HIGHS TOGETHER -- TRUCKING INDEX MAKES HIGHER LOWS AND HIGHER HIGHS -- $SPX STOCKS ABOVE 200 DMA AND STOCKS ABOVE 50 DMA STILL HEALTHY -- $SPX IS NOW IN THE SECOND LONGEST RALLY IN 30 YEARS
$INDU $SPX AND $TRAN MAKE NEW HIGHS TOGETHER... The $SPX made a new two day thrust higher this week. The $INDU shown in Chart 1 has made a new high today above the December 31st high. This new high confirms the breakout on the $SPX in Chart 2.
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Chart 1
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Chart 2
The Transports have also broken to a new high as shown in Chart 3.With the $SPX, the $INDU and the $TRAN making new highs, you are still in an uptrend.
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Chart 3
TRUCKING INDEX MAKES HIGHER LOWS AND HIGHER HIGHS... While the $TRAN has three major divisions, only the Trucking Industry is not at new highs. Both Airlines and Rails are at new highs. We can see positive divergence on the $DJUSTK index shown in Chart 4. Today it has made a higher high. This is a bullish looking change.
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Chart 4
$RUT AND $COMPQ MAKE LOWER HIGHS... So far the $RUT and the $COMPQ have started to make a series of lower highs and lower lows. This points more to rotation from small cap to large cap and from growth to value. Chart 5 shows the $RUT and Chart 6 shows the same trait in $COMPQ. While this needs to be monitored, we still see lots of participation in the large caps which dominates both the $INDU and the $SPX.
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Chart 5
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Chart 6
$SPX STOCKS ABOVE 200 DMA AND STOCKS ABOVE 50 DMA STILL HEALTHY... The $SPXA50R and the $SPXA200R are both at very healthy levels as shown in Chart 7. The $SPXA50R shows the % of stocks above the 50 DMA is still above 80%. The $SPXA200R shows the % of stocks above the 200 DMA is still above 80%. For the market to weaken, stocks have to start falling below the 50 DMA. Major declines fall below the 200 DMA. Until these numbers start making lower lows and highs, this is not getting weak. Notice back in 2011 how they could not get back above the 70 level and ultimately rolled over.
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Chart 7
$SPX IS NOW IN THE SECOND LONGEST RALLY IN 30 YEARS ... The current $SPX rally from November 20th, 2012 has just become the second longest rally in 30 years as shown in Chart 8. The chart shows that only the 1996 rally was longer since 1984. This is not measured from the absolute low. This is from the last 200 DMA touch.
Chart 8
XLI, XLE, XLY, XLB ARE UP 3% ON THE WEEK... The growth sectors surged this week with big outperformance as shown in Chart 9. This is a change from the last few weeks. XLB is not quite 3% but you can see it is dramatically above the % increases for the other sectors.
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Chart 9
GOOG DOES A SPLIT INTO GOOG AND GOOGL... GOOG did a 2 for 1 split. This change is different as 1 previous share of GOOG has been split so you received one share of GOOG and one of GOOGL. You can see both are on the ticker cloud today as shown in Chart 10. One has voting shares and one does not. More information can be found here. NY Times
