Below is the link to today’s Briefing. When I work with clients, I try to demonstrate the importance of viewing the development and structure of any move in any market in multiple timeframes. While the Indices eliminated the series of lower highs I have been watching, the structure of the advance was very weak. Also, the intermarket divergences continue and the NASDAQ has some of the appearances of the year 2000, when comparing the futures with the composite.
Based on the above, I am very concerned over this market in the intermediate and longer term timeframe. The structure is not supporting a continuation of this rally, at least at this time. However, there are times when exuberance or psychology will outweigh structure and allow for price development to continue unabated, as it did in 2000………until it stops. Therefore, it is difficult to imagine the Indices being this close to all-time highs and not putting in at least slight new highs.
Be aware of any short term inter-market divergences that may exist in the near term, especially if the NASDAQ puts in a new high that is not confirmed by the S&P.
Price development when analyzed against the structure longer term is still showing warning signs.