4  negative aspects about the chart above.

  1. Nearing the top of the current uptrend.
  2. Volume fell on Thursday when the Dow made a new yearly high, and then we had a distribution day on Friday.
  3. Dow 10k acted as a magnet and now that we overcame that psychological number, we could “sell the news”.
  4. This is probably the most significant as the McClellan Oscillator is now negative, and make a new lower low. The fact that the market is near it’s highs and this is not confirming is a troubling sign. While it’s not reason enough to aggressively short the market, it clearly is a sign to lighten up on one’s exposure to the long side.