Market Makes New High But Lacks Volume

On Tuesday, the market opened with a weak breadth of -200 after closing Monday at +1,600. The market moved slowly higher off the open, setting a new daily high. At around 11 a.m., the market took and dip and returned to near where it opened on the day; it then ranged for the remainder the day.

The market ended another day with mixed results. The Nasdaq fell -13 points (-0.33%). The S&P hit a new all time high of 1,902, but backed off the high to close at 1,897, essentially flat. The Dow hit a new high of 16,735 and closed at 16,715, up +19 points.

Volume today was lower across all three indices. Decliners led advancers by a 7-to-5 edge. Down volume beat up volume by about the same ratio. Market breadth closed at a weak -546. Part of the low volume issue is that we are entering the vacation period of spring/summer. But part is due to the low ADX cycle and the fact that the bull market is getting old. 

The S&P hit a new high, but could not close strongly above it. If it cannot breakout, then it is likely to test back down to support again. The Nasdaq closed back below its 50 EMA today.