HYG is leading the market lower, but this is a symptom, not a cause.
HYG with a leading negative 3C has gapped down even further...
And the averages including SPY above are seeing the move lower confirmed by 3C as it moves lower.
However if there's to be a bounce in the area, this is probably a good place for it, first...
Volume is increasing on the downside, this is no different than macro capitulation, the concept holds true intraday, it can cause a short term flame out to downside momentum and a bounce, whether a gap fill or not I can't say, it doesn't look good right now.
And second, just as we predicted after the week of protecting Black Friday consumer sentiment (via the market), the price pattern with a head fake move on the daily chart is near breaking...
60 min chart of SPX and this morning's BIG move to a support area with higher volume...
That would be the head fake move above the Broadening Top I was showing last week, it's right at the top trendline, when that breaks the market has a high probability of seeing a fast drop lower, faster than this morning.
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