Once again the NYSE Summation Index Chart is signalling a top in the markets via the bearish cross. Below I’ve highlighted all the most recent times the NYSE Summation Index has given this bearish cross – all but 1 of the past 6 have been major short term tops in the market.
Click to enlarge this great technical indicator.
The financial sector (XLF) has not participated in the current rally at all. In fact both the 3 month and 1 month performance have the financials lagging other sectors:
This doesn’t speak well of the strength of this rally. The chart of the XLF SPDR ETF also is pretty poor looking…
The OIH Oil Service Holdrs ETF is sporting a very classic retracement on it’s chart coupled with declining volume during this past rally. Take note of the fact that it’s hit the same trendline nearly 3 times in the past.
You hear about “low risk trades” all the time…well, here’s a great low risk SHORT trade or PUT trade!
We talked about the S&P 500 making a kiss of death type retracement on the Facebook page yesterday. Honestly I didn't think it would happen as fast as it did.
The kiss of death retracement is the last rally after breaking a major trendline. In this case it's the intra-day trendline so it won't hold much influence other than the next few days as a swing trade.