NEW YORK (TheStreet) -- The tale of two separate stock markets continued on Thursday.
The Nasdaq was down 38.71 points to close at 4237.73 and the Russell 2000 index was down 11.68 to close at 1181.11. The DJIA, however, closed flat on the day, down 0.45 at 16572.55, and the S&P 500 closed down 2.13 at 1888.77.
If the DJIA and the S&P 500 are hoping for a good jobs number Friday to spike another move higher from here, they had better hope that it is a blowout number. Both indexes are in overbought territory. In the case of the DJIA, it is approaching extreme overbought conditions, according to my internal algorithm numbers.
It appeared at one point this afternoon that the DJIA and the S&P 500 would follow the Nasdaq and Russell 2000 indexes much lower. But, as has been the case recently, the algorithm programmed machines and the short hedge funds that are forced to cover their positions at the market highs brought those indexes back, at the close.
Volume was once again pathetic. Maybe the reason for that is the fact that we have seen sizable outflows from equities into bonds.
Friday should be a very interesting day indeed. The markets are counting on a jobs number that may not really matter. This market is overbought. The DJIA and the S&P 500 need to come down in value. They need to get on par with the Nasdaq and Russell 2000. It really is that simple. You cannot continue to have markets that are out of sync with each other. It just does not work for any length of time.