Crocuses Dow Jones Industrial Averages {DIA}

I thought I'd continue our "Crocus Series" by showing you some more major averages. For a more thorough explanation please see Friday's post regarding the S&P 500.

1. The Dow is just eking over what I call our "Golden Cross". In fact its performance here almost doesn't qualify as an actual "Cross". We'll have to see how it behaves over the next week or so.



2. One of the reasons the Dow may be having trouble making the Cross is that it has been eating through a major level of resistance that was established over many months. This is taking considerable effort by the underlying stocks in this index and could lead to a pause in its advance or a possible retracement of some of its recent gains.



3. Index and ETF shows a very overbought state.



A note. The S&P 500 the Nasdaq and the Dow have all been up now for six straight weeks. This makes them more vulnerable to a correction at some point. A correction here wouldn't necessarily be a bad thing as it would give stocks a chance to pause and regroup for possible further advancement later this year.



*Long ETF's representing the Dow Jones Industrial Average, the S&P 500 and the Nasdaq in client accounts.