3 Problems With Dow 16,000

The new Dow Jones high warrants some healthy skepticism

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3 Problems With Dow 16,000

It’s All About Financial Stocks

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The market has been ramping during the past few weeks with a narrowing base of support, and fewer and fewer stocks participating to the upside. Consider that only 62.7% of the stocks in the New York Stock Exchange are above their 50-day moving averages. That’s down from 85.2% in mid-October, 75.8% at the September peak, 72.7% during the July topping pattern, and 80.4% at the May peak.

Incredible.

Most of the lift for the Dow Jones is coming from its financial components. Compare the rise in Bank of America (BAC) to the breakdown underway in Caterpillar (CAT).

If all is well in the global economy, both should be rising in unison.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/3-problems-dow-16000/.

©2014 InvestorPlace Media, LLC

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