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BUZZ-DJI: On a run
December 8, 2016 / 2:45 PM / 10 months ago

BUZZ-DJI: On a run

** Dow Jones Industrial Average sees new record, on track for 5th straight week of gains

** Although still 2 trading days to go, rolling 5-week gain currently 9.3 pct, 4th best over past 5 years; DJI rallied 10.2 pct over 5 weeks from mid-Feb to Mid-Mar this year and 9.8 pct and 13.6 pct late-Sept-early Nov 2011

** Advance to new highs now confirmed by DJ Transports which finally exceeded its Nov 2014 peak; S&P 500 and Russell 2000 also at record highs

** DJI advance since election day close led by Goldman Sachs ; shares have contributed 30 pct of DJI’s 1217 pt thrust

** 23 DJI constituents higher, 7 down; losers from tech, staples, and health care. Apple down, while Johnson & Johnson biggest drag

** Like SPX, DJI has decisively broken above a multi-year resistance line. Chart: reut.rs/2hogzCP

** Should lead to further run, although weekly RSI now most overbought since May 2013

** That said, 4 of 5 worst DJI declines (>10pct) since 2007 came with clear RSI divergence; a condition which is not yet present

** As long as 19200 contains back and fill, advance can continue; based on SPX targeting 2400, DJI could rise toward 21000

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