Dow Breaks Higher

Blue chips are outperforming tech here, which is causing some to start discussing a market top. We are dubious of this claim at this point and will need to see stronger evidence than strong performances in large cap stocks to make us get long term bearish. The NASDAQ has a weekly buy signal and there is a good chance we will see tech make a strong move to catch up over the next few weeks. Right now we fail to see any distribution activity that marks a market top. As we stated, the market will make a monkey out of the greatest number of people and this is a good opportunity for it to make a strong run and fool the majority. On Friday we mentioned that the SPY was poised for a weekly breakout. In fact the SPY is poised for a weekly breakout, but the report contained a mistake. It was actually the Dow ETF DIA that was poised to break out last week. The DIA closed over the magic number of $110 and broke out over long term resistance.