The Dow Jones Industrial Average hit another new high today at 12,486.30, following up on yesterday's rally.

How long can this last?

Well, according to RSI levels, the rally is not yet overbought. Currently at RSI 69.36 (Overbought is 75), the Dow could have another few up days before flattening out.

In early November, the Dow rose 1.27% from the 10-day Moving Average, before even hitting overbought territory. From there, it moved another 0.74% before riding flat.

This current rallying leg is in its infancy. It's only moved 0.42% from the 10-day Moving Average. If we liken this rally to the last, then the Dow still has another 1.59% to move. From current level, that's a flattening out around Dow 12,649, probably by mid next week.

We'll revisit this thesis then.

Additionally, the Russell 2000 (RUT) is trying to get a leg up on the rallying action as well.

After a falling pennant formation on the RUT that lasted from December 4 to December 13, the RUT is making its move up on the 10-day Moving Average. A falling pennant formation, like this from early December, is a breakout signal.

This breakout indication is right on time for the Santa Claus and January Effect rallies.

Moving over to holiday video game console news…

Nintendo's Wii hasn't even been out on the market for very long and they're already instituting a voluntary recall.

The company has announced that it will replace 3.2 million straps. The original straps have caused some untrained players to lose control of the handheld device, making it crash into television monitors, phones, and computer screens.

(For proof of the carnage caused by this new generation interactive game system, check out www.wiihaveaproblem.com.)

That's all for today.

Have a great weekend, and we'll see you next week!