Thursday Market Commentary
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
As you probably know, the market was strong in the last hour of the day when the professionals swoop into an oversold market and make some short term profits. Up until the last hour, the underlying distribution continued as market breadth deteriorated. The NYSE new highs /new lows were weak again with 44 new highs and 121 new lows, which are not good numbers.
The longer term chart below gives the spike in new lows a better perspective.
The distribution seen in the spike in new lows was confirmed by the drop in the bullish percents.
The Bullish Percent of the S&P 500 turned lower today, although it does remain above the 70-level. A break below 70 will be another confirming sign that the trend has turned lower.
The former leader of the market this past spring was the energy sector, but it has now turned lower as Tech seems to have taken over the leader late in this intermediate cycle.
