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 (AMEX: DIA)/short iShares Russell 2000 Index (AMEX: 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.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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