There is a lot of talk regarding the rally and if it will continue and this talk has been going on for months. Many more advisor's are bullish since the economy has come off some of the worst levels. There are some signs of weakness but these are slight to moderate.
The NYSE has not broken out of a prior high and did not confirm the break out seen in the NASDAQ and Value Line Arithmetic Index. The NASDAQ trend appears to be slowing and has broken the up-trend which should keep investors on their toes.
Typically when the Advance Decline Line (ADLine) starts to move sideways a trend change may be on the way. The markets closed up this past Friday and the ADLine moved lower showing a lack of support for the upward movement.
The downward tick in the ADLine was slight and may indicate a slowing in the trend. The earnings season was fairly good the past couple of weeks, but it was comparing to a very poor previous year. Regardless the market is now entering a quiet period and it may mean sideways movement or a pull back. With the power of the bulls in the market it seems unlikely there will be a deep pullback unless there is some surprising bad news. The may come in the form of commercial defaults on mortgages but that remains to be seen.