This is a sign of thinning market breath. The situation is actually much more if you drill down and examine new 52- week highs.
Nasdaq Composite new highs on 12/8/16 were 562
The higher the Nasdaq goes, less stocks are making new 52 - week highs.
The internal strength of the US stock market is very weak. There is a high probability a decline to at least the November 4th bottom could begin on 1/11/17
No. I'm there is a divergence with the other two main US stock indices.
The Nasdaq is making a new high that is unconfirmed by the SPX and DJIA.
This is a bearish signal and a potential prelude to at least a correction.
In this situation the Nasdaq would be the last of the three main indices to top.
what do you mean by "the Nasdaq would be the last of the three main indices to top"?
I am a beginner sorry :s
The main Nasdaq would be the last of the three main US stock indices to reach a rally high.
In 2015 mid-May the DJIA, ,SPX and IXIC made 2015 rally highs. Then in July IXIC made a new high while the DJIA and SPX failed to make new 2015 highs.
A few weeks later was the August 2015 mini crash.
Thanks for the comment.
if he ever makes it there.