Just further confirmation that the computers are running the equity markets without much in the way of additional participation. It will be interesting to see if they can prop the hollow markets until the congressional elections in November.

Regards - VHF

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Computers using algorithms were busy yesterday. The buy trigger was a move by the S&P 500 Index above 1,131.23. Traders began talking about a reverse head and shoulder pattern. However, the pattern is far from clean. The pattern is confirmed by rising volume. That didn’t happen yesterday. Meanwhile, RSI has increased to just below 70%, the level where intermediate corrections frequently start. However, RSI continues to rise implying that short term momentum remains positive. Next resistance level is at 1,173.57.

Ditto for the Dow Jones Industrial Average! It also broke to a four month high on lower volume and an RSI that is close to 70%. Next resistance is at 10,920.

Ditto for the NASDAQ Composite Index! It also broke to a four month high on lower volume and an RSI that is above 70%. Next resistance is at 2,434.