The View; That Was Your Down Day

We finally had a decent down day in the markets, however underneath the surface it was weak and the indices made it seem worse than what it really was. In this fast moving short term mentality world any down tick is considered the end of the world. Here is what I think is important; the Nasdaq and the $NDX are below their 10 day and 20 day moving averages, the $XLF is below the 10 day, $XLK and $XLB are below their 10 and 20 day. I tend to shy away from short term swings when we are below the 20 day moving average.

From the View I would focus some attention to the $HYG, it’s down 7 days in a row, it closed below its lower bollinger band and it has an RSI2 3 day average of .76, bottom line; it is set up as a possible mean reversion play.

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