Familiar Leadership:

All-time highs are not bearish. I have seen many a market prognosticator exclaim that stocks making new 52 week lows, to the lack of tech names trading above their 50 day SMAs, is very bearish. And on paper it is. These divergences are concerning, but we are obviously not paid on discrepancies or any other indicators than PRICE. PRICE is omnipotent, and although our antenna should be perking up when one sees all of the above negative scenarios, technicians do not act until PRICE CONFIRMS that gloomy outlook. Now I am never one to toot my horn because I am WRONG plenty and if you do the market has a way of punishing you. But ever since mid to late May when tech was out of favor, and energy/financials/industrials were roaring, I suggested in our 5/19 Technology Note that the Nasdaq was in a good risk/reward scenario. Semis were flourishing, and I mentioned the possibility of a bullish ascending triangle forming. Well, that held at the round 13000 number, and the measured move above 14200 that has been taken out is to 16000. Of course, this will take time and the road will be choppy, but the trend is firmly back in place.  

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