Like A Hot Knife In Butter
Do you remember the
17 or 18 days I have been talking about? The days that the Dow refused to close above 11,000 since
Sept. 14, 2000? Boom! Say bye-bye to resistance. The Dow cut through that important mark like a hot knife in
butter. Just what the heck does this mean? It is a definable,
unadulterated, positive, no-questions-asked breakout.Â
Volume expanded on the move: 11,000 now becomes support instead of
resistance. The S&P 500 followed suit, breaking above the important 1272
level. The Nasdaq is not far behind, but still needs to leap 2200-2230.Â
These major indices have been lying in the weeds over the past few weeks on light volume…just the way you want to see
it. The charts below speak for themselves. Any talk about the market revisiting the lows…forget about it.
I learned a long time ago never to listen to opinion…never to listen to news…and just to watch stock market
action. Of course, correctly interpreting action is of utmost importance. The news is still
bad, opinion is still bad…but the market is acting perfectly.
I have no idea how long it lasts or what targets it hits. I just know that I will never fight the
tape. You best not either.
Tomorrow is another day.
Gary
Kaltbaum on TradingMarketsWorld! Gary Kaltbaum will be appearing on the
Intermediate-Term Trading board Thursday, May 17 at 8:00 ET. Be sure to take
this opportunity to chat with and have your questions answered by a leading
intermediate-term trader. Click
here to take your trading to a new dimension.