The GMI regained the maximum level of +6 as there were 234 new highs on Thursday. There were also 199 successful 10 day new highs–stocks that hit a new high 10 days ago and closed higher Thursday than 10 days earlier. This is the largest number since September 16 and shows that buying new highs has been profitable. 58% of the 4,000 stocks in my universe closed above their 10 week averages, the highest percentage since September 13. By the way, September 13 also was a short term peak in the QQQQ, so high values on some of my indicators could also represent a minor top. 92% of the Nasdaq 100 stocks rose on Thursday, along with 88% of the S&P 500 stocks and 80% of the Dow 30 stocks. There has not been a day when 90% of the Nasdaq 100 stocks advanced, since I began posting the GMI in late May. So yesterday was an unusually strong day for the tech stocks. 79% of the stocks that have doubled in the past year closed above their 30 day averages and twice as many stocks are within 5% of their new highs than new lows (22%/10%). Thursday was the thirteenth day of this QQQQ rally (U-13). To sum it up, enjoy this strong rally, but we should watch for any signs of irrational exuberance and a minor top.
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