The broader markets finally gave it up Thursday, but after almost three weeks of chop after the 7-24 Sell Signal given. In prior updates, we went over that fact that the Transportation Index and the Russell 2000 were dropping and were a concern, but the S&P 500 and the Nasdaq 100 chopped sideways. And both even looked like they might make one last charge higher.
The market always does its best to make you — and me — doubt the warnings. The S&P 500 and Nasdaq 100 tried to break out, but the attempt resulted in a Breakout Failure (BOF) and Topping Tail (TT). I’ll review that and more in a video.
Rarely, does that type of shock (BOF and TT) to bulls not follow through lower. That being said, this year, the market has defied the normal bearish turns. However, those bearish turns did not have bearish internals aligned with them.
Previously, I talked out the possibility of the Dow Jones Industrials moving higher on its own being a move that sucks in the last holdouts. That is because of it being so widely followed and quoted. At this point, that looks to have been the case.
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Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director of Master Trader
Pristine’s Founder and Creator of the Pristine Method
Dan Gibby
Chief Options Strategist
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