It has been more than a month since my last post titled "Risk On" and today I feel
compelled to write again as an short-term top might be in place. As SP500 and NAS100
kept reaching new highs, the former leaders (Russell 2000 and Biotech) turned on their
heads and fell down. Now all of these major indices are showing weakness. The stars
are aligned and the result is a focused laser beam pointing downward.
Let's look at some charts.
QQQ: RSI, MACD, and Stoch indicators show bearish divergence from the weekly to 30min
time frames.
S&P500: RSI, MACD, and Stoch indicators show bearish divergence from the daily to 30min
time frames.
IBB: Lower high + Head & Shoulder breakdown, $233 provides some support.
IWM: Lower high + Head & Shoulder about to breakdown. Price action and volume profile
suggest lower.
At times like this, I will be defensive, or even mining for some short setups.
compelled to write again as an short-term top might be in place. As SP500 and NAS100
kept reaching new highs, the former leaders (Russell 2000 and Biotech) turned on their
heads and fell down. Now all of these major indices are showing weakness. The stars
are aligned and the result is a focused laser beam pointing downward.
Let's look at some charts.
QQQ: RSI, MACD, and Stoch indicators show bearish divergence from the weekly to 30min
time frames.
S&P500: RSI, MACD, and Stoch indicators show bearish divergence from the daily to 30min
time frames.
IBB: Lower high + Head & Shoulder breakdown, $233 provides some support.
IWM: Lower high + Head & Shoulder about to breakdown. Price action and volume profile
suggest lower.
At times like this, I will be defensive, or even mining for some short setups.
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