Endless Optimism

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The lift from the jobs report persists. Let’s look at a few key indexes.

The Dow Composite (also known as the Dow 65) has pushed above its “left shoulder” horizontal. To understand the significance of this, let’s go to….

…..the Dow 30. There are two “challenges” left for the bulls at this point, and they aren’t especially big ones. The first is to push above its own “left shoulder” horizontal (that line in red). Should it accomplish that, there’s just a morsel of overhead supply between the red line and the topmost horizontal, which of course represents the highest point in human history.

Another feather in the bullish cap, as if they needed any other, is that the series of lower highs has been busted on the small caps (notice the red circled area is higher than the green tinted area). So in this instance, for the small caps to join the party, they would need to exceed that magenta horizontal, which is at 1602.10:

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