Today the market had a lot of advantages, Asia did well, China did not raise rates, the Euro snapped back from its gap and went parabolic sending the dollar lower, the averages gapped up, there was no bad economic news out, POMO operations came in at an excellent rate leaving primary dealers with cash to burn in equities, but despite all of this, the market does nothing. This is starting to smell like a shift in sentiment, certainly a shift in sector rotation as the theme most of the day was the shift in financials as it continued to unfold today.
Today the NASDAQ breaks 8 straight days of gains and closes down -.36%, the S&P went no where, and the Dow eeked out .16% with a shooting star candlestick. The NASDAQ put in a reversal candle called “dark cloud cover”. All in all, the market had every advantage and gave them all up.
QQQQ wedge, with a dark cloud cover reversal candle.
As I talked about a lot today, financials are not looking good, they've rallied and smart money looks as if it has taken their gains and are now done playing the sector.
This negative divergence now seems to be shifting down, this of course puts pressure on the S&P-500 which is financial heavy.
This is the SPY 15 min chart, all of the 3C damage in the red box was done today alone!
The NASDAQ also saw some pretty bad losses across the tech and a few other sectors.
Semis clearly coming under heavy selling pressure.
ADBE down -3.13%, this is one of our featured short positions as the test of the flag-or the Kiss the Channel goodbye have sent it lower, it should see a new low.
INTC 60-min showing nearly a month of distribution, down nearly 2% today.
NVDA 60 min also looking ready to turn down-down over 2.5% today
EXPE showed quite a loss today, there are other stocks I'll highlight tomorrow in tourism/travel/hospitality that look to be under pressure, including casinos.
Dell was also down -3.82% , not helping the NAS 100 today.
My computer will e working overtime tonight as I have set up some scans to look for sector rotation, but by the amount of different industries I saw break out Friday and give it back today, I think there's a serious shift of sentiment going on, that or smart money is done playing in the long sandbox.
Keep an eye on the trade list tomorrow as new ideas will be up as a result of tonight's scans. That is if my computer doesn't freeze up-that's right it's 30 degrees here in S. Florida. I can't remember the last time it was so cold, I know, all of you up north are really feeling for me.
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