The SP followed through to the downside losing 11 handles on the day. Price has settled below the rising 50dma and has a Seeker buy setup in progress, currently 3 days down. Tomorrow is the Wednesday before options expiration so be on guard for stocks moving towards pegs.
Naz lost 15 on the day and in so doing, pushed the CCI below the zero line implying acceleration of downward momentum. The one bright point is that price closed at the midpoint of the day’s trading range.
The multi sector daily chart looks similar to yesterdays with the BTK exerting relative strength.
Interestingly, the NYSE 10-day Trin dropped and broke below the zero line. This should be read that there is plenty of selling fuel if the bears get proactive.
The BKX was top gun, settling unchanged after ranging both higher and lower intraday. Note that the price action was a price flip and the first day down in a Seeker buy setup.
The BTK did very little but was relatively strong vs. both the ES and NQ.
The XAU was again a source of funds. As discussed in last night’s report, the intermarket technicals are bearish for gold.
The SOX broke decisively below the near-term DTL and now must use the 2010 highs at 420 for support.
The OSX was the last laggard on the day losing 2.6%. Price closed right at the static trend line. Note that the CCI has move aggressively lower and is near the first oversold threshold around -100.
Oil followed through on the outside day down. Retracement fibs have been added to the chart which indicates first support at 103.39.
Gold was lower by $14 and could easily move much lower if the XAU continues to weaken.
