One very interesting aspect of today's action is the outperformance of the big caps versus the small caps, which has widened my ratio spread long Dow Diamonds (DIA)/short iShares Russell 2000 Index (IWM) in a lopsided, powerful upday -- a signal perhaps that the leadership in this new upleg is being narrowed to the highly capitalized, substantial companies. It is with that in mind, that we take a look at the DJIA pattern.

The DJIA lifted off right from a convergence of my "sensitive" near-term moving averages (9,20,50), which certainly has the look of a new upleg -- that has propelled the Dow to new all-time highs at 13,769 so far on the way to 13,900-14,000 next. The fact that oil prices have reversed into negative territory after hitting 12-month highs this morning could provide yet another reason for money to flow into equities in the upcoming hours/days.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.