Stock Market Overview

Since the beginning of the month stocks have been moving higher with the NASDAQ leading the way. Today the NASDAQ made a new high for the year but when you look at the other indices we see a slightly different picture.

The Dow and S&P have NOT confirmed the new high in the NASDAQ which may turn out to be a huge negative for the overall market unless we see some sudden strength come into the Dow and S&P. In a healthy market we should see all 3 indices breaking high together but we simply aren't seeing that in the current market.

If the stock market continues to move higher and the dow and S&P are able to make new highs for the year, I will look to buy the very next dip. On the other hand, if the market begins to roll over from here, I will short this market and will probably look to short the dow (DIA). I'll let the market tell me which way it wants to go but as of now I am leaning towards the short side.