Remember that the Fed has used the Russell 2000 as their primary object of levitation because it is so broad, the breakdown here thus is very important.
A bearish cloud cover reversal candle thus far on the daily chart....
IWM (Russell 2000 ETF) 1 min negative leading divergence-the worst kind.
Even on the 10 min chart it's an ugly negative leading divergence. Remember the SLV update and my post warning how correlated all of the asset classes are, this appears at first glance to be major de-leveraging
The QQQQ 15 min chart is now solidly in a negative divergence and this is about when we see reversals.
Finally, this is a daily chart of the SP-500 showing only closing prices, last night I said that when a channel or support trendline is broken, we often see a "kiss the channel goodbye" bounce. Also I mentioned the fact that we may see an effort to establish a new head fake high (false breakout), but right now we must take this chart as our first assumption of perhaps a reversing market. If we get the false rally, we'll deal with it then, until then, I would make sure I have cash, I have gone off long margin and have exposure to short positions that I would like to trade anyway regardless of the market, meaning good looking shorts, not just any old thing to get short.
I'll bring you some ideas.
No comments:
Post a Comment