The ES posted a range high distribution candle. Price was little changed on the day after a strong opening gap. This is a camouflage sell signal which is particularly concerning to the bulls since it’s at the high water mark of the rally that started last year.
The NQ futures posted a wide range doji. Price remains below the static trend line set back in July. The market was bifurcated with strength in the NQ vs. ES so watch this relationship carefully on Wednesday.
The 10-day Trin has come in substantially but has yet to hit an overbought reading of 0.85 or less.
Multi sector daily chart:
The NDX has yet to confirm the higher high in the SPX. A confirmation of this would be very positive for the overall market and failure would be a divergence in this new school Dow theory pair.
The OSX has yet to get in gear with the higher crude prices which implies that there is still a pretty hefty premium in the futures.
The XOI was the top gun on the day but remains trapped in the bearish rising wedge pattern.
The OIH was positive on the day and had relative strength vs. the broad market. The active static trend line is the current resistance level.
The BTK was unchanged on the day after touching the 200dma. This is a very important level of resistance where the 200dma converges with the 8/8 Gann level.
The BKX interacted with the 8/8 level and didn’t fare well. Initial support will be at the rising 10ema.
The XAU was the last laggard on the day and remains in a very wide ranging down trend.
