NEW YORK (TheStreet) -- The Fed-induced stock market bubbles continued to inflate as October ended and as November began. The Dow Industrial Average set a new all-time high at 15,797.68 yesterday, which followed a new all-time high for the Dow transportation average set at 7131.80 on Monday. The latest all-time high for the S&P 500 was set at 1775.22 on Oct. 30 with the Russell 2000 matching that feat on the same day with an all-time high at 1123.26. The Nasdaq set its latest multi-year high at 3966.71 also on Oct. 30.This first table shows that the ValuEngine valuation warning reached its severest 2013 levels on Nov. 6 when 83.3% of all stocks were overvalued, with 53.3% overvalued by 20% or more. This was partially caused by the rise in the yield of the 30-year Treasury bond to 3.75%.
The daily chart for the S&P 500 shifted to neutral from positive with declining momentum with its 50-day SMA at 1707.71 and the Oct. 30 all-time high at 1775.22. The Nasdaq has a negative daily chart with Thursday's close below its 21-day SMA at 3892.30 with its 50-day SMA at 3796.64 and its Oct. 30 multi-year high at 3966.71. The Dow transportation average shifted to neutral with its 50-day SMA at 6703.86 and its Nov. 4 all time high at 7131.80. The Russell 2000 has a negative daily chart with the 21-day SMA at 1102.33, its 50-day SMA at 1077.18 and the Oct. 30 all time high at 1123.26.
My monthly risky levels are 16,162 Dow Industrials, 1802.0 S&P 500, 4014 Nasdaq and 1133.14 Russell 2000. A close today below my monthly pivot at 6927 on Dow Transports would be another negative divergence. Read: Obamacare Gag Orders Based upon my semiannual pivots an overall neutral zone is between 3759 on the Nasdaq and 1089.42 on the Russell 2000 with 1743.5 on the S&P 500 in-between. A close today below 1743.5 on the S&P 500 would thus be another negative divergence. My semiannual and quarterly risky levels are 16,490 / 16,775 Dow Industrials, 1853.8 S&P 500, 4025 Nasdaq, 7205 Dow transports and 1163.21 Russell 2000. If the stock bubble breaks the risk is to annual value levels at 12,696 Dow Industrials, 1348.3 S&P 500, 2806 Nasdaq, 5469 Dow transports, and 809.54 Russell 2000.
When this confirmation finally occurs the Fed-induced equity bubbles will pop. Today we are in the snap and crackle phase with the divergences I cited today. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.