NEW YORK (TheStreet) -- The stock market on Friday had a bit of a relief rally from the selling of the past couple of days.
The DJIA gained 41.55 points to close at 16775.74 while the S&P 500 closed higher by 6.05 at 1936.16. The Nasdaq was up 13.02 at 4310.65 while the Russell 2000 index closed at 1162.68, up 3.28.
The volume on Friday was once again below average for an up day. This has been a common theme for a long while now. The buying conviction is simply not there on up days.
I am continually seeing ominous signs of a market that is simply running up on air and cannot continue at this rate without some form of correction to the downside.
I am sure that I am in the minority when it comes to evaluating where this market is in terms of overbought or oversold, bullish or bearish.
My work is very technical in nature and my algorithm process is based on multiple durations of time. I am not a momentum chaser that buys stocks at the highs in hopes of those stocks going higher. I am old school. I prefer to buy low and sell high.
One example of my work is Apple (AAPL). I am seeing ominous clouds on the horizon when I looked at the weekly stock price and compare it to my internal weekly power index and volume trend. Both have been making lower highs on the weekly chart as the price of AAPL has been rising. That is a negative divergence.