Friday saw a small amount of weakness in an extremely overbought market. A 5% gain in less than a week for the Dow Jones is a terrific and very rare move. It also has the market extremely overbought.
S&P Index Close
The S&P index lost just 3.03 points marking a second day of sideways action. The close was 2,164.45.
Dow Jones Index
The Dow Jones moved higher adding 39.78 points to close at 18,847.66. Another new all-time high which has not been confirmed by either the S&P or the NASDAQ indexes.
NASDAQ Index Close
The NASDAQ closed the day higher by 28.32 points to reach 5,237.11.
Stock Market Outlook for Tomorrow – Nov 14 2016
All three indexes are extremely overbought and ready to pullback. Friday started a bit of weakness, but Monday should see more weakness although stocks could try to jump at the open.
With the markets extremely overbought the pullback at this stage is an opportunity to set up more trades. However although it is nice to see the Dow making new highs, none of those highs has been confirmed by the other two major indexes.
The advance has been extremely narrow without the broader market jopining in. This is a definite cautionary signal.
Until the S&P and NASDAQ confirm the Dow advance to new highs, by setting their own new highs, stay cautious, at least to start off the week.
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