Odd Day on Thursday Gives Warning
Thursday was an interesting day in the stock market. All of the major indices were up nicely in the morning. And while the S&P 500 and NASDAQ 100 continued making new highs into the afternoon, the S&P 400, Russell 200 and Dow Industrials did not with the first two seeing real weakness during the afternoon.
Additionally, even though the NYSE A/D Line and high yield bonds also scored new all-time highs as you can see below, the former went from +1400 net advances to +100 (second chart) even though gains were strong in the S&P 500.
While one day doesn’t mean a whole lot in the grand scheme of things, I did want to point this out as it’s very unusual behavior and may signify a market that’s a little tired over the short-term. It says absolutely nothing for the intermediate and long-term.
Any and all weakness remains a buying opportunity until proven otherwise. Dow 23,000 remains our next upside target for the Dow, possibly later this year. The bull market is intact.
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