Another well-known market observer, Art Cashin, went on record today saying, "market technicals are quite strong and nowhere near signaling that you’re near a top," citing as basis for making this claim the expansion in new 52-week highs occurring as major indexes extend into new high ground, post-March '09 bottom...
Well, what pray tell do the likes of Cashin and Gary Kaminsky make of the collapse of listed issues setting new 52-week highs when indexes were bottoming at higher lows over the past six months?
February's anomaly is particularly conspicuous. A bearish divergence was registered ... and yet this fact goes ignored.
Furthermore, we are to believe that, after an absolutely monster advance over the year prior no such leadership had developed as could keep the NYSE high-low differential likewise improving as the NYSE Composite was bottoming at a higher low?
Now, some observers are fond of citing those few-and-far-between issues that survived the bloodbath of 1929-1932 relatively unscathed (for example MMM). So, you would think that, at this point in the market's recovery there would be not only like-survivors, but newborn, leading fliers more or less resisting any general selling pressure such as has developed over the past six months while continuing their relatively undisturbed advance. Where are these leaders?
This subtle matter-of-fact somehow is being missed. However the reality of it indicates that a top is nearer than even some of the most seasoned observers think.
When the likes of a normally reserved and exceedingly cautious Art Cashin claim otherwise, citing evidence that rather shows mistaken judgment, contrarians take note...
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