The SP was lower by 4 on the day which puts settlement below the recent trading range. While not decisive down side momentum is gathering as evidenced by the lower high in the CCI moving towards the zero line.
Naz also broke to new low ground, more decisively losing the 10ema than the SP side. On the day, Naz was lower by 10 handles with a similar condition in the CCI.
The multi sector daily chart shows the BTK exerting its typical late cycle strength.
The weekly cumulative NYSE advance/decline line took a hit since the last reading. This leading indicator suggests that the last weekly candle in the SP was pure distribution. A break under the January highs would be a clear signal that broad market prices are headed much lower but until then pullbacks in equities should be view as buying opportunities.
The 10-day Trin remains neutral around 1.00, neither overbought nor oversold.
The BTK was the top performer on the day, settling at a new high on the move. Use the 100% fib extension for the next upside target.
The BKX treaded water, be sure to set an alarm for a break under 52.30 which was both Friday and Monday’s low. Note that there is a Seeker setup phase that just completed last week.
The trend leading SOX was bearishly weaker than both the SP and the Naz. Price is now below both the 10 and 50dmas. Note the DTL that has been added to the chart.
The OSX is making good on the Seeker exhaustion signal and breaking lower. The next major test will be interaction with the rising 50dma.
The XAU was the last laggard and for now, has failed the test of the 2010 high.
In the cross pair chart below note how gold recorded a new high on the move but it was not confirmed by gold stocks. This is a classic bearish divergence and makes these elevated prices in gold futures suspect until it is confirmed by a new high in the XAU gold mining index.
Oil recorded a bearish range-high outside day down. Sell rallies for the next few sessions.
