STRONG ARMS

Dick Arms, a well respected market technician and the creator of the "ARMS Index" also known as the "TRIN" has comments this morning on realmoney that echo my own concerning the overbought status of the markets.

"We have a dichotomy between the Dow and the other averages. On Wednesday, the Dow, but only the Dow, went to a multiyear high. Moreover, a legitimate breakout is usually accompanied by much heavier volume and a widening trading range. We have had neither.

This, then, can hardly be considered a valid breakout, at least until the other averages confirm the move. In the meantime, the wide swings in both directions on the Dow in the last two days indicate increasing indecision after the advance that began at the end of January.

It is an indecisive market, but one that has had a good advance, and appears to be encountering resistance. I continue to believe some profit-taking is in order. "