Just checked on TLT-Treasuries again to see if they gave up any ground, and still none. The importance here is that treasuries move the opposite of the market, when the market goes down, they are the natural flight to safety trade, yet for the last nearly 3 hours, they won't let go of them.
XLE/Energy has a substantial presence in the market and the S&P, the fact it topped at the earlier market divergence and won't budge is strange as the group accounts for a large segment of the market. Furthermore they saw a churning volume spike/candle and volume has dropped off from there.
While this doesn't appear to be a big disconnect, Financials, nearly the backbone of the S&P have not moved any higher since the first market divergence, this is very strange when the comparison symbol is for the S&P-500.
Utilities? Well I don't know how whacky this is, but again, they refuse to move above resistance while the SPY is just doing it's own thing.
The credit though is perhaps the strangest, that and Financials , followed by Energy.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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