SHORT TERM: New closing high in the DOW.
The stock indices gapped up at the open hitting their best levels of the day at 10:30AM. After that it was pretty much a stairstep down into the EW support pivots. Then a small rally in the last half hour to turn all indices positive for the day. The DOW was the stellar performer: gaining 70 points, and closing at a new high for the bull market. Indices do not make new highs during corrections. The DOW seems poised to start leading this market higher again as it did in February, and then again in March. The Beige book was released this afternoon and the figures indicated steady growth, with 3 of the 12 districts showing sharp gains. The stock indices are still working from those positive divergences on the RSI and MACD oversold levels. Short term the indicators are neutral to oversold. We didn’t get much of a gain in the NAZ/NDX/SPX today, but expecting them to follow the DOW’s lead shortly. Good trading!
INTERMEDIATE TERM: uptrend
LONG TERM: bullish