Transports now negative for the year, again. Down 1.13% this week. $SOX is doing worse, down 1.49% for the week, so far. What I guess I will never understand is how the market is being held flat with these two key indexes under intense pressure. So far this year, weakness in the transports has not impacted the market, but at the same time the markets were rallying tick for tick with the $SOX index until recently and now, somehow, the $SOX doesn’t matter either.
One thing I can say with absolute certainty is that the markets will not stay in this tight range forever. My own $SPX parameters based on last Thursday’s candle are 1410.08 and 1397.01. We’re going to break down through or up through that range sooner or later I just have no idea when or in which direction. Just because we’re closer to 1397.01 probably doesn’t mean squat.
Be careful and watch for a head fake as $SPX may push higher only to fall back and head south.