The major indices made new 52-week closing highs today. The only problem is that the Dow and S&P 500 did so on (slightly) lower volume. Don Worden is calling today’s move in the S&P an exhaustion gap because of the volume decrease. It doesn’t look like one to me but I guess we’ll know for sure if that gap gets filled. It certainly doesn’t feel like the market is about to roll over. In fact, it seems like it’s destined to test 10,000 on the Dow and 2,000 on the NASDAQ in very short order. I made some purchases today that I’ll try to hold for that eventuality. I added a few more of those dead cat bounce types to my potential shorts list today. I’d like to get in a couple of those as soon as they start to roll over again — if and when.
