Resistance Already?

 We seem to have hit another resistance level, this just just a hair above the old one. Each thrust up seems t have a little less juice behind it, and one of these days, the market will stop. Since it was marginally a down day, the low volume today could be considered bullish, but all in all, the market is weakening here.

 The Nasdaq, on the other hand, is strengthening a bit, and might lead one to the conclusion that the market is undergoing rotation rather than correcting. It is too early to jump to that conclusion, but if this keeps up, it will be a correct conclusion.

 Now, out of the blue, the price relative on the Dow industrials has reversed and is sharply dropping. Normally, that is bullish, and so far I see no reason to believe otherwise.

The Russell 2000 has gone flat in price relative, with price still in a slight up trend. This looke to me like it is either topping or close to it. Again, this could just be the effects of rotation, and we may see some other sector of the market take the lead, but ultimately, weakness here will translate to market weakness. That weakness, however, has yet to materialize.

The market appears to be stalling again, just two days after a major breakout. I am still leaning toward a market correction beginning quite soon.

I will have the new highs update shortly.

2013-02-11 16:30:23

Source: http://samuraitrader.blogspot.com/2013/02/resistance-already.html