Saturday, November 19, 2011

Dow Is Leading Higher

The Dow Industrial's relative strength line just made a new cyclical bull market high.  I don't think this is consistent with the resumption of the bear market.  In 2000, the Dow lead the way lower, topping before the SP500 and the Nasdaq with a falling RS line.  The Dow's RS line did rise during the 2007 to 2009 bear market, so there is some ambiguity here, however, during that period it was falling slower than the broader market, and this time it appears to be rising faster.

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