Futures down decently after markets moved all over the map yesterday off of fake China news. The outcome was a sell off into the close.
And now not so good news on China this morning BUT…
Regardless, internals remain way worse than the indices.
NEW YEARLY HIGHS? What new highs?
Leadership? Utilities, reits, housing, a few SEMI-names, a few consumer staple names.
Chart patterns? After a 1,300 point drop and a very low volume 650 points up, not thrilled.
One small light…some of the down and out software names that topped out a couple of months back are rallying back up.
What/ You’ve never seen down 1300, up 750 in a few days?
And now we get more China trade meetings, impeachment talk, economy this, that and the other thing.
Bottom line, trendless and friendless as moves random and major trends not to be had.
The good news, eventually, markets and individual sectors will find trend. Patience here.
Strong open this morning after good reversal yesterday BUT:
Markets were very oversold yesterday and pulled back into the longer term 200 day.
Leadership…what leadership? Ok AAPL acts with good r/s.
Not sure any rally/bounce lasts as the technical condition just not that great.
Have a great weekend.
The trees: Markets are very near term oversold. Almost 1,000 DOW points in less than 2 days will do the trick. A bounce can occur at any time. It will be random. It could be on a gap or it could come out of nowhere in the middle of the day.
The forest: Most everything has turned down. The DOW and S&P now join the rest below the 50 day moving average….which means we were able to take many more names off our front screen as a bunch of names also broke the 50 day. The TRANSPORTS are nearing support that has held twice in recent month.
Go slow. Let things play out. Leadership was defensive before this month. the NEW YEARLY HIGH LIST has almost nothing on it. A couple of HOUSING names and a few other defensive names.
Don’t rationalize why. Pay attention to price.
Yesterday was gross. Today’s open gross.
Before today, growth was bearish and half the market wasn’t happening. The other half now under pressure.
Near term oversold but we must tell you, lots of charts potentially turning down.
Keep in mind, for a good amount of time, every time markets looked to be in trouble, they have bounced back up but again, with internals not even close to the major indices.
Stay tuned. Bumpy ride at hand.