Good Morning Traders!
The SPs are dipping below their key previous 20 day swing high. There are weekly sell divergences that can put a damper on the market. Bears are at near record lows on the investors intelligence. Put call ratios are neutral though, and selective individual shares have continued to make new hgihs. The divergence between the NAZdaq and the other indexes is especially noticeable when looking at the previous 20 day swing high – The Nazdaq is holding well above it.
Many markets are deeply oversold: Grains, Sugar, Bonds, Gold, Silver…..but this is also a sign that the weekly charts are firmly in control. Any oneo – two day bounces in these will set up pinball sells.
The British Pound has a bear flag on the 240 minute chart. It too got deeply oversold but has had a reaction up. If it fails to push much lower on Monday/Tuesday, an intraday Buy Anti will form for an A B C up on the 240 minute. The Dollar index has been holding its gains, any one day flush will set up a pinball Buy.
Of all the global ETFs, US Mexico and Canada have been RS leaders: North America is the place to be!
For the SPs: 1977.75 was the previous swing high basis the Dec contract. 1991.39 was the high basis the Cash. The Dow and the Russell are trading well below their previous daily swing high. See if the bears can have downside follow through – the market only had one day high to low on Friday.
Markets in BO Mode: