Can indices jump 2.88% this week........

Friday's close brought us these stat :

S&P 500 @ 2089.17....only 2.14% from making a new all time high

Nasdaq @ 5104.92......only 2.44% from making a new all time high

Dow @ 17823.81.......only 2.88% from making a new all time high

RSI in indices are as follows :

S&P 500 @ 58.38

Nasdaq @ 59.76

Dow @ 60.42

In terms of points we have to push through these numbers only :

S&P 500 needs 45.56 points to make it in new record high

Nasdaq needs 127.03 to make it in new record high

Dow needs 527.56 points to make it in new record high

Above numbers are easy to get to IF we have the buying momentum carries on into thanksgiving holiday, history is positive for the market during thanksgiving week.

Recent TAPE has taken us into 70 RSI in all indices then a pullback has come.

BUT we have pulled back from current level in RSI for few days before marching on towards 70 RSI..

History is also telling us to remain engaged until 70 RSI is attained.....risk / reward is very good....

BUT only the strongest stocks are performing and making new all time highs, while laggards are remaining laggard......

Strong stocks are all high in $ value for small players to get in, too much capital outlay is required to have a meaningful position, thus institutions & hedge funds are heavily involved in high flying stocks.

Mergers and acquisition is happening in SOX which remains ripe for takeovers...due to low valuation....

Russell & Mid caps are struggling to make any  meaningful move yet......

After any pullback which may last no more than 3 days, it is prudent to look into entry in strong stocks, even a minor position works well.

In conclusion, it appears that a Thanksgiving all time highs may be in the cards.

Good luck with your own strategy and comfort level.

BLOG does NOT give buy or sell.

Saleem