There's some significance to the Russell 2k being the ugliest of the averages today 1) It's the broadest measure of the market and 2) It's been the target of Fed pumping.
On the daily chart, today's candle engulfed Thursday and Friday and was only about $.11 cent off taking Wednesday as well. Volume is up a bit, but volume on downside moves isn't as important as upside moves.
The IWM was the only of the majors not to close above the intraday lows I ranted about in the SPY.
However, we do have a positive divergence on the 5 min chart, so we may see some after hours strength or some early strength tomorrow.
On the 30 min chart you can see four cycles starting with accumulation at the far left (white arrow), then distribution in April starting a down cycle, then another up cycle with accumulation around mid-April and now a wedge and a negative divergence that's leading and making multi-month lows.
Looking at MoneyStream on a daily chart, there's a negative divergence at the top of the Feb-March move with an RSI negative divergence and Stochastics moving below 80. Now it's a bit different; we still have a negative divergence in MoneyStream, the difference is that the first negative divergence happened hen price was lateral, this one MoneyStream is in the same place, but price is higher, so it's a negative divergence, just a different scenario. The same goes for the RSI divergences. Otherwise it's a good place to stage a reversal, there was a new high which draws in bulls, the more convincing the high, the more bulls that can be trapped. Today's candle closed just off the lows and is a reversal signal in and of itself.
While the rest of the market didn't have a close down over 1%, when you look at how much the other averages gave up off their intraday highs, today's price action wasn't bullish, it wasn't even tepid as the % moves would seem to suggest.
If this is a reversal, then we'll have an interesting scenario in silver, not so much in gold, and maybe in oil. There's bound to be a flight somewhere and PMs are usually a prime candidate. Of course it could just go into gold for a few days while silver sorts itself out. I just wrote a quick scan to look at high yield dividend stocks, while I came up with well over 700 stocks, I sorted them by yield and there seems to have been a move into high yield dividend stocks today. I'll have to take a closer look and at the industry gainers/losers, but that's an initial assessment.
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