Market Approaching All Time Highs

After eight days of advancing prices market finally issued a down day. Friday's jobs report, which is news that I don't pay any particular attention to, was unusually poor. Market gapped down, filled the gap and closes the day strong, though still negative. Anyway, the low volume down day following a minor climax top on Nasdaq is a pretty constructive sign and additional confirmation that new highs might be imminent.

However, a catastrophic jobs numbers should be at least considered. As a rule, big smart money never sell into down gaps. If they were, their enormous selling power would immediatelly made market crack wide open, so they would be selling at even lower prices. No, if smart money has any intention to distribute their shares, accumulated during a correction, they need a breakout to new highs. And that's the territory I will be paying particular attention to.

There is one more indicator I'd like to point out. I track market momentum using my own proprietary indicator, which has shown a very strong bullish momentum during the last two weeks. I do expect some negative momentum as we approach a possible double top, but currently I see absolutely no distribution from the price by volume charts nor my momentum indicator. So, from my perspective, the party continues into the next week.