The other day pre-open, we noted that the market was at a decision point. Well, it seems to have decided and it’s not pretty.
That’s a gross looking pattern on SPX and since that post the SMA 50 was lost and daily MACD has joined weekly MACD in crossed down territory. The January low is very important and it is under threat.
Dow has made a lower low and that’s not good.
SOX is not as gross, but slid under the SMA 50 today. It is vulnerable.
RUT is relatively okay compared to the above. As we noted in this morning’s NFTRH ETF update, which highlighted increasingly bearish markets, the small caps should be watched closely. The weekly chart is actually fine as of now, unlike the bigger indexes.
Switching to a couple of NFTRH’s oft-reviewed weekly charts, the BKX has dropped to critical support, as in bull market support. A drop through here and it’s all over for the Pigs.
And then amidst the wreckage, there’s the most bullish chart around, the Biotechs (BTK).
What’s it all mean? Well, the market is obviously bearish but curiously its leadership is relatively intact and the whole FrankenMarket remains bifurcated in its signals. This is just a quick update. I can’t burn brain cells trying to interpret every oddity. That’s what the weekend report is for. ;-)
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