Sunday, August 28, 2016

A Wild Day: Profit Takers Take To The Streets

Yellen's speech pushed markets both up and down, but probably left more minds stuck in indecision than offered a clear path forward. Markets don't like indecision, which gives bears and weak longs an opportunity to sell. There are still key support levels to break, but recent weeks of tight action could lead to an unraveling.

The S&P finished as registered distribution with new 'sell' triggers in On-Balance-Volume and Directional Indicator. The index has been stuck in a relative downward turn since July (against Small Caps). This index is offering the clearest 'sell' signal.

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Wednesday, August 24, 2016

Modest Selling

Yesterday's buying likely caught shorts out, but later weakness may have encouraged profit taking today. The damage was relatively light and only served as a warning.

For example, the S&P didn't lose breakout support and selling volume was light

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Tuesday, August 23, 2016

Small Caps Breakout

Markets made a break higher, although only the move for Small Caps stuck.  The Russell 2000 managed to finish with a new closing high and is very close to a fresh MACD trigger 'buy'. There was a significant gain in relative performance of Small Caps against Large Caps and Tech.

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Monday, August 22, 2016

Meh Part II

The week started much like past week's finished with a whole lot of nothing. No volume, no action, no outlook.

At least the S&P is holding breakout support. Watch for 'sell' triggers in +DI/-DI and On-Balance-Volume.

The Nasdaq managed to gain a little, waiting for traders to break it out of its range.

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