Not Yet Convinced

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Stocks closed once again at new all time highs. The daily equity cycle broke above the previous daily cycle high on Monday, which confirmed the new daily cycle. A new high printed Wednesday, even though stocks closed lower on the day. Today stocks managed to close at a new all time high, but failed to print a new intra day high.

1 spx

There is a lack of clarity regarding the daily equity cycle is on day 10 of a new intermediate cycle or day 10 of the 5th daily cycle of the intermediate cycle.

As we discussed last night, the transports have not confirmed the new highs.

2 Trannies

The transports did recover a bit on Thursday, However, the trannies managed to print a lower low and are still in a technical down trend.

ibb

Biotech, one of the leading sectors, also has not confirmed the new highs that printed in the broader market.

xlf

And the financials have printed a swing high which was accompanied by a trend line break.

So while stocks closed at new all time highs, the lack of confirmation in these other key areas is concerning.

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