The major market indexes brushed off a little selling yesterday and kept the melt-up rally intact by posting higher highs again today. Volume was light, but the NASDAQ Composite Index led the indexes with another higher high. The only laggard is the Dow Jones Industrials Index, which has been weighed down by Boeing (BA).
This market continues to operate in contradiction to previously accepted rules, namely that big-volume upside moves are often just a precursor to further upside, and big-volume downside breaks are a precursor to further downside. Making the point that if you see a stock down on big volume, that’s the new buy signal, money came piling right back into cloud names this week.
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