The View; Bells Are Ringing

The market had a dismal day yesterday after showing signs of life in the latter part of last week.  One thing that I did notice yesterday that I have not in a while is the amount of bear flag set ups that actually were working see the financials $XLF $WFC $COF $GS $JPM $MA $CME $CBOE.. Since 2009 the classic bear flag technical set up became more of a bullish set up but not yesterday.

Many powerful breakouts of the last few days failed miserably; $DDD, $AFOP, $YY.  The regional banks which had some of the best underlying set ups completely did an about face, broke down, and now look like great short set ups; $HBAN $KRE $MTB $PB .  These are all subtle changes that I believe will make a difference going forward.  However, I’m not willing right now to pick a side or even suggest to look for a bounce or further weakness, less is better right now until things clear up a little, it seems like we are in the middle of nowhere.  Here is what stands out from The View;

    • The $SPY $IWM $DIA $XLF $XLK $XLE $XLI $XLY $SMH all offensive sectors are below their 50 day moving average
    • Emerging Markets via the $EEM is now down 15.78% for the year and below the 200 day moving average.
    • Every major index and $SPY sector is down in the last 30 days.
    • IBD has the market in correction.




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