Markets barely budged Wednesday and perhaps the old adage comes into play, never sell a dull market? Both the Nasdaq and S&P 500 were basically UNCH on hump day and the Nasdaq has traded in a very tight range the last 7 days. The S&P 500 has finished each day this week within 2 handles of each other. This type of taut action must be construed as bullish, especially near all time highs. Will it recede from this very round 2000 handle? Interestingly basically every major sector was in the green today, albeit slightly. The behavior of certain important groups, like transports, has me viewing the markets rosier theses days. I have been reluctant with my bearish leanings, although I have remained long, and here at highs lets remember markets “can remain irrational a lot longer than we can remain solvent”. One of my favorite names in the transport group remains CP. It now has formed a good looking ascending triangle formation thats pivot aligns right with the round 200 handle. Remember when 2 or more pivot points occur with one another it heightens the possibility of a big move. Canadian peer CNI hit an all time CLOSING high today recording a nice outside day in the process bouncing off the round 70 handle. The stock is up 2% thus far this week and if that holds it will be higher a very impressive 18 of the last 20 weeks.
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