New closing high for Dow Industrials vindicates short-term bull but may awaken long-term bear

Quite a day as equities closed at their highs of the day, and in a few cases like the Dow Jones Industrial Average on their closing high for the year too. Negative divergence showed up, suggesting that this vindication of our short-term bullish view may also open the door to our longer-term bearish views. The QQQQ for example, having previously tagged just 12 cents away from their .618 retrace to the 2007 high, made a lower high today. And I understand there are cycles reasons to think equities may give out soon, as mentioned in my earlier post. Sure, something may change in the currencies picture or relationships - but, we'll see. I won't repeat my earlier post. As for the dollar, it looks to me like it needs one more poke down; will see if equities can do something inverse, but I don't see it so much on those charts.

LQD which I've described often recently, had a good down day. If you used the past few days to leg into short positions, then you'll join me in seeing what we can get - $101, maybe $99. If it's topped a big one, which I consider possible, then a swing may be profitable for a longer time - just depends on your trading timeframe, vehicle and style. (Options players: always mind premium-eating problems!!)

Interesting movements indeed in yen, and some others. I believe the yen has much higher targets but the prospect of a double top isn't fun for the long side. So one way to play is re-buy on a move back over $111.49 - very important pivot. Or play a pullback pattern. We'll have to keep an eye on it.

Well it'll be another fun weekend of review and analysis! While I've got family matters that have cropped up, I'll be continuing to put things up I know my readers are interested in (me too!) - so, have a great Friday night, and, "see you" later!