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Dow High Belies Coming Bear Market:

NEW YORK ( TheStreet) -- The Dow hit a new record high today. And the action reversed some of the bearish sentiment that had overtaken commentary about the major indices on But far from all of it.

Sentiment on the ETF that follows the Dow Jones Industrial Average (DIA) swung to bullish, with 51% of users calling for gains.

Dow closes at a new all time high...the rest of the indices to follow.. $dia $spy $qqq ? Brandon (@theoptiondon) May. 9 at 04:34 PM

I see a rally brewin' for next week folks $SPY $QQQ $IWM $DIA ? Matt (@BetaBouncer) May. 9 at 11:48 AM

However, for most investors, the celebration was incredibly uneasy. Some pointed to the sharp sell off in momentum stocks as evidence that the character of the five-year bull market had changed. And they wondered whether the apparent correction in valuations of momentum stocks seen in the last month would soon spillover into the broader market.

$SPY $DIA amazing to me that indexes have remained near record highs while individual stocks are getting crushed. Something's gotta give! ? Brett Fromme (@BDF_NYC) May. 9 at 11:51 AM

@BeckyHiu The Low hanging MOMO fruit gets sold off first. Its how it always happened in the past. ? The Option Wizard (@OptionsWizard) May. 8 at 04:39 PM

Arguably, the momentum selloff that crushed small caps had already taken down the tech sector as a whole. The Nasdaq closed the week down, despite rising Friday. Commentary calling for gains dropped along with the weekly price action. Sentiment on the ETF that tracks the tech-heavy Nasdaq  (QQQ) fell to 52% bearish Friday.

$IWM is 10% off highs and $QQQ 5%, whereas the $SPY is only down 1.1% from its high and $DIA just 0.3% from its high. Ain't that deceiving? ? Becky Hiu (@BeckyHiu) May. 8 at 04:08 PM

Many investors urged caution. Instead of a rally, investors were likely to see more choppy trading in the weeks ahead with high multiple stocks continuing to post losses, they said.

Bottom line, if you've been a bear on overpriced stocks you've been right!! Just not on the $SPY $DIA & ETF's. Stock pickers bear market ! ? SteveZ1 (@Stevez1) May. 9 at 08:57 AM

And some banked that the old adage "sell in May and go away" would be tested by the end of the month. They expected that the Dow's new highs would be short-lived, and severe losses could be coming.

$SPY Sell in May, start to pray. $QQQ $DIA ? Jeff Reznik (@jeffreznik) May. 9 at 02:22 PM

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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