THE CLOSE

We said yesterday that more and more areas getting distributed. It worsened today but we must tell you, not that bad.

For sure, continue to avoid commodities, oils and the like as oil prices broke down today and most commodity names are cracking through support/moving averages. This includes gold/silver also.

t just looks like we have some corrective work here. After all we have been telling you we haven’t had a 2% drop since before the election…so we are waaaay overdue.

A couple of other things we noticed today:

Not thrilled financials started strong and ended down…but nothing nearly in breakdown mode.

Biotech still acting well…need to see IBB move through that $300 range.

Homebuilders were just fine again today…in fact, strong. As we have said, they have the best chart patterns right now.

Just know new highs have deteriorated, the a/d recently has been bearish and again, waaaay overdue.