More new highs — the S&P 500 made another 5+ year high and the Dow made a new all-time high. The Nasdaq and smaller cap stocks continue to lag though. They have yet to join the Dow and S&P in making new 2006 highs.
Trend Table
I’ve switched the Nasdaq short term trend to ‘up’ since it’s above the 10-day moving average and the triangle.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up(+) | Up | Lat |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
When do you see a market retreat occuring?
With the US dollar falling in value, it seems like the US stock market is extremely overvalued.
I have no idea. I just follow the charts. They aren’t signaling a retreat to me yet.
@TJP:
The dollar and the market don’t always move in opposite directions. The USDX fell from 120 to about 80 from 2002 to 2005, while the market fell in 2002, bottomed in early 2003, and kept climbing through the end of of 2005.
This week, the dollar bounced off support and rose a full point. Given the historic support for the USDX around 80, one could argue the dollar is done falling and that its “collapse” is yesterday’s news.