The Dow Theory could be in play here with the broad market. When both the Transports (IYT) and the Dow Industrials (DIA) cannot make higher highs and start making lower lows the market has topped according to Dow Theory. We are watching the transports closely because the Dow chart has already made a lower low and now e are waiting for the Transports to do the same. They have both made lower highs if this current rally stalls here. This will be important in the next few weeks to help calculate the markets next major move and if there will be a trend change.
Chris Vermeulen – www.TheGoldAndOilGuy.com – Complete Trading & Investing Portfolio Service