Increasingly ugly pictures are showing up in market leaders and followers alike. Here are some leaders and/or items that are strategic to the followers.
Tranny has been diverging this mess for some time now.
SOX held below the 50 day averages and is making a messy pattern.
Bank index has been okay due to rising Treasury yields. It seems to be wondering right now whether the rising yields story might be over bought.
If the Small Caps keep this up they are going to break a very important (and heretofore bullish) support level best seen by weekly charts. Daily…
Once broken, the Biotech index set its sights for lower levels. It’s not there yet.
The Internets took leadership from the Bio’s last week… for about 10 minutes. It was not a good sign when they immediately flopped, now testing support.
I am by no means calling the market cooked. But I am hopeful that finally it can get its healthy correction. With the waning momentum, waning corporate earnings, waning economic data and waning supportive monetary policy (for now), such a correction, if it materializes, could be more than the small garden varieties we have had thus far.
For now, leaders are generally tipping bearish. We’ll just track day to day, week to week to see how it progresses.
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