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Originally Posted by coolhand

Thursday's trading saw small caps snap back from Wednesday losses to post solid gains. They didn't quite erase all of the losses, but they did get most of it back. The S&P 500 struggled all day and ended the session near the neutral line.




Both charts remain bullish. Upside momentum has fallen off, but price remains not far off its peak.



Cumulative

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Stocks were down yesterday with the Dow giving back Tuesday's gains with its 105-point loss on Wednesday. Several indices made new intraday all-time highs in early trading but the indices came off those levels quickly and drifted lower most of the day. Small caps lagged the large caps for a change, but the Nasdaq was the big loser, falling about 2%, but it's still just off all-time highs. A late afternoon push higher did take the indices off their lows.

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Originally Posted by coolhand

The market finally saw some selling today, which was needed to consolidate gains and work off the overbought nature of some parts of the market.




No technical damage yet, and we can see that RSI is still overbought on the DWCPF, but any more selling will likely take the DWCPF out of overbought territory. Momentum turned down, but remains bullish for now.

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More of the same for stocks yesterday as they continue to grind higher. The Dow gained back 104 of the 148-points it lost on Monday, but the S&P 500, Nasdaq, and small caps, all plowed higher into the close, after a weak open, and closed at new highs.

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Originally Posted by coolhand

Back on November 16th I said...

"I have a hunch that this market could get silly to the upside. I can't predict it, but I would not be surprised with a rally that has even the bulls shaking their heads. I'm looking forward to seeing how this actually plays out."

Today, we got yet another rally on top of the gains over the past 3 plus weeks. Admittedly, the DWCPF has been outpacing the S&P 500 during this time, but up is up.

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