Following up from the Street$marts issue I published today (link to follow here on Friday), the bulls are stepping up here on the Dow, S&P 500 and NASDAQ 100, closing the day within striking distance of new highs for 2012. I expect that to occur over the coming days. Once that is achieved, I do not anticipate a blow off to the upside. Rather, I think the stock market will be within a few percent of peaking.
Flies in the ointment include the S&P 400 mid caps, Russell 2000 small caps, semiconductors and transports. All are well below their 2012 highs, which is not a healthy sign. Of course, theses indices could get into gear, race higher and confirm, but that’s not the usual scenario.
Have a great weekend and enjoy what’s left of summer!