$TRAN down again today and now within 60 or so points of going negative for the year. Closed below the 50MA today and if this area doesn’t serve as support, then who knows where it’s headed.
IYF/XLF got hammered today and had 13/34 Bearish X’s on their respective charts. This could just be a one day decline, but if not then add the financials to sectors under pressure.
IWM is breaking down. The 5EMA is a hare’s breath away from crossing down through the 10EMA on the daily charts, which would be a ‘sell’ signal per the 5/10 method. IWM has been flopping around and going nowhere since about the 3rd of the month. Back on the 10th, IWM got hammered and had a Bearish 13/34 X on its 60min chart, but then bounced back a few days later. Today, IWM had another Bearish 13/34 X on its 60min chart so it is possible that IWM will bounce either tomorrow or Friday; however, should IWM close below 81.00 before it bounces, then it is likely headed lower.
Chart courtesy of FreeStockCharts.com
The markets remain overbought and breadth, as gauged by the Summation Index, continues to deteriorate. Today on the NYSE there was twice as much declining volume as advancing volume. A market just can not go higher with participation dwindling, IMHO, of course.