The chart below backs up Joe Granville's claim. Here we see new highs on the NYSE dropping off as the Dow rises or holds steady.
The chart below tracks the relative strength of four major groups against the S&P 500 (S&P is the center black line). As you can see, tech has been the big lagger and energy has been the winner.
Comments -- With the Dow churning and getting nowhere for 14 days, it strikes me that a fair bet is that the Dow has been absorbing a lot of stock for sale -- and in the process the Dow has held its ground. If so, then there is a fair chance that the Dow will break out of its narrow range to the upside.
I show the DIAs below. The last action is a little ascending triangle, which should break out to the upside. If it does, the Dow should also break ... Log in or subscribe to continue reading.
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