I haven’t posted many new ideas because nothing new has happened. The news remains slightly negative and prices continue to march higher. Technically, this market is in good shape and while bullish sentiment has increased, it’s not yet approaching levels that typically mark tops.
The momentum also remains with the bulls. Last week, the bears got a fat pitch in the form of a confusing CSCO merger announcement, a weak Dell earnings report, a slowdown in retail sales at Target, and weak housing starts. On top of all that the NDX hit a DeMark Sequential (TM) Sell signal on Tuesday. However, the market blew through the "bad" news and the sell signal.
When the short term (60 minute or daily) DeMark Signals don’t work, it usually means investors in a longer timeframe are in control of the market. That means if you are looking for sell signals on an intraday or daily basis, you’ll probably run into more days like Thursday – the buying will just overwhelm the short term traders.
Looking to the weekly DeMark indicators, this bull move still seems like to want to run several more weeks. The DeMark Combo (TM) is currently registering a 4 of 9 on the weekly chart.
So while the market might see temporary pull backs, all indications are that the momentum remains to the upside.