Yesterday it was clear from a technical standpoint that the market had rolled over. Major indices had, and still do, strong bearish money flow divergences. Indices had made a series of lower lows and the rollover was one more lower high confirming the downtrend. The only thing missing was volume. But since this is late August it's hard to expect much. Sr. traders are on vacation now after all.
Yesterday's reversal was quite the shocker then. It appears as if this market is entirely random; ran at the whims of the Jr. traders playing with their programs.
It's unclear now who has the upper hand, bulls or bears. Under normal circumstances we would continue to give the nod to the bears, but since the market refuses to play right it's probably next to impossible to guess.
Indices are back up at major overhead resistance. The QQQQ is back kissing its broken trend and the SPY is trading up against its downsloping trend line. Technically the market should turn lower once again. But if the market decides to react positively to the next to sure fact that the Fed is going to lower rates in September, you can throw the technicals out the window because the market is going to do what it's going to do despite what it "should" do.
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