The Gilmo Report

February 12, 2020

February 12, 2020

As the market keeps extending its rally, I remain wary of a meaningful pullback, but so far, the market has continued to zombie-walk its way to new highs. The trend is persistent enough to also bring up the possibility of a parabolic sort of resolution, that is a blow-off move higher.

I characterize the current rally as a zombie-walk because of the uneven action on the way. High-volume stalling and churning and high-volume sell-offs may knock the indexes back a step or two, but eventually they emit a derisive grunt and keep marching onward and upward.

We can see the stalling and churning action in the daily chart of the NASDAQ Composite Index, the leading major market index. That action occurred yesterday and last Wednesday but constituted little more than a stumble for the index as it pushed to all-time highs today on lighter volume.



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