Base Getting Stronger

The big news of the day is the Dow. It is once again threatening the 11,000 level. If the current price level can hold through Friday, there will be a weekly breakout on the Dow chart. The S&P 500 is also trading near recent highs. The running theory is that money is flowing out of small caps into the blue chips. If so, we could be in the last stages of the bull market and could potentially see a larger correction in coming months. For now though, it is best not to try and speculate too much and just play the charts in front of us. Sweeping theories about what the market may or may not do don't make anyone any money, they just cause traders to lose focus and make bad decisions. The QQQQ is building a strong base here and while we could still see choppy trading into Friday, we expect a rally to ensue from this area. As such, dips remain buying opportunities.