What does this mean for the future?
The Dow is now within 100 points of being into thin air as it has retraced close to 50% of its down move. The NASDAQ has already done this, and the S&P 500 has come very close to achieving this goal. Clearly the trend continues to be positive for the Dow with today's new highs. The other two indices, while closing very well and on an upbeat note, must clear their previous highs to start another push to the upside. It remains to be seen whether or not that will take place.
Clearly this is an emotional market that's been driven more by sentiment than hard economic news.
Having said that, one must take into consideration the perception of the marketplace, and as of right now that perception continues to be friendly towards the long side of these markets.
In my new video I show you some of the key points to look at in terms of where these markets could potentially break down, and possibly reverse to the downside.
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All the best,