The Dow Jones Industrial Average closed at a new high price for this bull market rally on Friday, while the S&P 500 came within a whisker of matching the Dow's achievement. The Nasdaq Composite and Nasdaq 100 have a bit more work to do yet.
While prices are still going higher, volume continues to shrink. Last week's rally occurred with much less volume than the previous week's decline. As such, I would remain a bit cautious as to whether the market can truly push much higher from here. It may need a little more time to consolidate last week's gains. Overall, it seems that the market still wants to head higher. Keep an eye on the Dollar though. At this point, there is still a strong inverse correlation between the Dollar and stocks. Any reversal in the Dollar's downtrend may hurt U.S. stocks.
The leading industry groups continue to be dominated by commodity based industries, and a couple tech related groups as well as the casinos. Leading indicator groups such as home furnishing stores, recreational vehicles and retail REITs are also among the best performers.
Enjoy the week!
Scott Cole
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