Dow goes over 14,000

indu0717.gifThe Dow Industrials went over the 14,000 level several times today. It got choppy each time and finally gave up and closed nearly 30 points under that area. The S&P was down a bit for the day. The Nasdaq 100 was the strongest of the three. On the Dow chart you can see three progressively smaller candle bodies (open to close range) following the wide range bar from last Thursday. It’s still a powerful impulse move up, but it needs a rest. It is hard in all time high area to call a correction as there are no pivots to test and no reference points. If we could get a day or two of a down market, thus leaving the little upthrust as a pivot, then we can see how the market reacts on the retest of that pivot. If it easily surpasses the pivot then another upleg should occur. If the market takes out the pivot and then reverses back under on the same day, or the day or two following, then the failure could spark a correction. If the market only gets part way up to the pivot and turns back down there could be a more serious correction. Until I see that pivot and the subsequent price action I just have to go with the trend. As it stands now I have to assume the trend and momentum are both up. Common sense would say that there should be a pullback any moment. But a market this strong probably won’t roll over easily so would expect corrections to be buying opportunities until further momentum divergences develope.

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