The Dow made a new record high yesterday to 18, 347.67, exceeding its May 2015 high of 18,312.39 set May 19, 2015. The Dow is up more than 180% from its low on March 9, 2009 and up 17% from its 52 week low on February 11, 2016.
Bank shares are leading the way. The Financial Sector ETF ( XLF: $ 23.34 ) + $ 0.29 or + 1.3% tacked on further gains yesterday following Monday’s rally of $ 0.43 or + 1.9% making a tally of + 3.2% for the two days. Goldman Sachs Group ( GS: $ 156.92 ) led the Dow rising 3.1% on the day and a tumultuous move of + 13.6% from its just two weeks ago on June 27th. The beleaguered financials had to join in for the bull move to continue.
Traders should use the UVXY, the short term Ultra VIX Volatility indicator as a barometer for market direction. The UVXY closed at 7.00 Tuesday after making a new all-time low at 6.93. The UVXY is a useful indicator for market direction. As the UVXY goes lower, stocks usually rally, one of the most reliable tools for overall market direction.
Bull markets are associated with low volatility. Bear markets are just the opposite, have high volatility.
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