The bull-market is by no means dead, in fact, it is still trucking on to new highs in this eight-month bull market rally. Huge day for the bulls, managing to gap up at the open and push through into new highs. For the Dow, it reached a huge milestone by closing above 10k for the first time in over a year. Everything looks very positive on the charts, the break of the September highs was done on above average volume which supports the buying power behind the move.
What I am interested in knowing at this point is whether the psychological milestone of closing above 10,000 on the Dow creates a negative consequence for the bulls; meaning now that this goal that has been talked about at great length for the past couple of months, lead to the bulls lowering their guard and become satisfied with the results that have been achieved over the past two quarters and then without any awareness, let the bears take over this market. Or…do the bulls let the euphoria continue, and shoot for 11k and beyond. I say its a toss up – but I honestly wouldn’t be surprised if we saw such a letdown by the bulls at this point.
What do you think?
Here are the NASDAQ and S&P Charts…