Late Notes: As I suspected, when the Dow refused repeatedly to follow the internals of the market to the downside, it was a case of the mass of NYSE issues heading down against the stubbornly unmoving Dow. I said it had become a battle between the general (the Dow) and the troops (the rest of the market). Obviously, the general won the battle. On Thursday the troops (the market's internals) surged up to join the stubbornly resisting general (the Dow).
The result was that the Dow and the entire market surged higher. Now the question becomes -- does the Dow and the rest of the market have the strength to continue rallying? I believe the big question now is whether the A-D line will confirm any new Dow high. The A-D line (shown below) has formed a definite downward pointing zig-zag, and I doubt that it can advance to a ... Log in or subscribe to continue reading.
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