Good Morning Traders! Expiration hangover indeed……The SP and Russell made new momentum lows on the 2-period ROC.
Even though the market closed with two days high to low and a pinball Buy, the SP and Russell both made new momentum lows on the 2-period ROC. This still leads to further downside. The Russell closed with a 30 minute Grail sale. The DAX has a three bar triangle breakout pattern. If it continues lower in the overnight session, the weekly sell divergences that are on the SPs and NAZ can kick in. Right now the DOW is perched at a precarious level (see chart above). A close back beneath that previous 20 day high will signal a bull trap.
Markets in BO Mode: