THE CLOSE

Take a close look at all the financials…most all have rolled over. Most have broke near term support and most have broken the 50 day moving average. Most have very big volume. Since financial led the market up from the election, it is not a reach that if it continues, it leads market down. After all, we have not had a 2% correction but one looks like it is here. Start looking at next support levels and recognize, markets do go down. Do not worry about why. Everyone emailing me asking if this is about Trump/Russia/taxes/healthcare. We don’t know. We just know when we see high volume selling and when we see a market going on the defensive. None of this mean the end of the world is at hand…but with sentiment off the charts bullish (we have been telling you this), froth picking up and the one-sided trade built up because of lack of corrections, it is imperative to pay attention.

As we scan, it is not just financials…we will have more on the radio show at 6:06 pm. You can listen at garyk.com if not in your city and will be archived soon after if you cannot listen live.