Here are daily charts of the cash Dow industrials and the S&P 500.
A few days ago I commented on the growing relative strength shown by the Dow compared to the S&P. This has continued and today the Dow is very near its bull market high established on January 11 at 11047.
Notice the three successive higher lows in the Dow recently. I have drawn lines under the three corresponding lows in the S&P too. You can see clearly that the Dow has been strengthening relative to the S&P. This sort of trend in relative performance tends to last quite a while once it starts and I think this tells us that the big cap stocks of the Dow are about to assume leadership in this aging bull market. This will certainly send all the broad based averages quite a bit higher than they are today.
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