Another leader index is nearing its upside target. The question is, will these things blow right through? The US has the duel fuel of a relatively okay economy and a strong currency, which theoretically gives the inflators more ammo. But how long do they keep inflating in the face of a soaring stock market before the whole thing begins to look silly to even the most casual observers?
TRAN daily
Cue the Dow Theorists, cue the DT confirmation noise and cue 6500 for the Tranny should this break to blue sky hold.
TRAN daily
I find it disturbing that the $RUT, which has been a negatively divergent leader broke the nice neckline I laid out for it in NFTRH 235. That is what I find disturbing.
Russell 2000 daily, from NFTRH 235
I find it less disturbing that the Dow bounced because that is exactly what we noted it looked like it was poised to do.
Dow daily, from NFTRH 235
Meanwhile, the Tranny is holding at some moving averages and under the dome we placed over its head this weekend.
TRAN daily chart, from NFTRH 235
The leaders had better get about the business of downside leadership fairly quickly or these damn bulls are going to… well, you know.
Wanna see a market whose leadership has really thinned out?
Semi’s, Small Caps & Tranny, click for full size view
On the verge of what I am not sure. Will it be a big bull market signal, a break of resistance and bull trap or a failure at resistance. Dunno. But Tranny is right there.
