The rally in the Dow Industrial Average last week above 18,000 got the attention of many investors as well as the general press. The Dow made its high for the week on Wednesday as it reached a high of 18,167 which was just 1% below the May 19, 2015 all time high of 18,351.
The mid-week review of the technical outlook "Charts Talk-Fear Walks" I discussed the recent new highs in both the NSYE Advance/Decline and S&P 500 A/D lines. The fact that these measures of the market's internal strength are acting stronger than prices means that the NYSE Composite and S&P 500 are both likely to make new highs.
The NYSE Composite is still lagging the other major averages as it is over 7% below the May 2015 high. The S&P 500 is just 2% below its high and the Dow Industrials is a bit closer as it is just 1.9% under the 2015 high. There has been much talk above the lagging action recently of the technology stocks as the Nasdaq 100 is still 6.1% below its all time high.
So what is likely to happen when the major averages do make new highs?
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