The Dow Jones Industrials Index has survived several tests of the 200-dma on pullbacks over the past week, but the Dow has been the only index to make it through its 200-dma. The other major and not-so-major market indexes have slowly trundled up closer to their 200-dmas, but no further. Meanwhile, the stocks that have been leading this market have continued to melt higher, with the number of breakouts from odd-looking bases increasing.
It’s been something of a staple of this market that when it rallies off the lows, the best moves occur in formerly leading names shooting up off those lows. Often, this results in numerous undercut & rally long set-ups, which is what we saw in late December and early January, as I discussed in my written and video reports at that time.
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