$BPSPX rose today by 0.40 pts, though it doesn’t change much in the greater scheme of things, IMHO.
$NYSI with a second negative tick in the last three sessions as this indicator is slowly rolling over.
Advancing issues today numbered only 1100 while decliners numbered 1900. Without manipulation, there is no way that a market can close near the flat line with this kind of breadth.
IWM, $SOX, IYT, XLF & IYF are either ‘sells’ or very close to ‘sells’ per the 60min trading strategy as they have all had 13/34EMA Bearish X’s and, except in the case of IYT which has broken its trend line off the December lows, are very close to breaking trend lines.
$VIX, per the 60min trading strategy, remains a hold after flashing a ‘buy’ signal last Thursday. This usually would mean a ‘sell’ signal in the $SPX so sometime soon something’s gotta give. Either $VIX drops and negates its current ‘hold’ status, or $SPX drops and gives a sell signal. Based on what’s happening under the market hood, I’d say that it’s the $SPX that’s going to drop. But when?
$SOX, $NYA, & $TRAN are on the brink of getting ‘sell’ signals in their daily charts per the 5/10 method.
But for now, close doesn’t count.
60min chart of SPY showing how it is just barely hanging on to the trend line. If the mad men at the helm had not saved the market today, SPY/$SPX would have given a sell signal in the 60min time frame. But, alas, THEY showed up just in the nick of time. However, after a nice rally on February 3rd, $SPX has just gone sideways while breadth indicators roll over. I don’t know how much longer the markets can hold up but until we see more overt signs of distribution then longs remain in the driver’s seat, IMHO.
Chart courtesy of FreeStockCharts.com