Been patiently waiting for indicators to line up. Vix has finally broken out:
Often times, the vix will retest the break before a further spike higher occurs....
Meanwhile the Advance/Decline line and Money Flow are still not flashing sell signals:
Typically during interim or longer term tops money flow will start to decline as the market continues highers, for example:
Same can be seen often times with the Advance/Decline line... It's been super rare for one or both of these signals not to flash a warning sign before a larger sell-off incurs. One of those rare occasions was January 2018 on the large melt-up. Something that certainly can't be looked past with the huge run up off lows the market has had in just months.
Remaining neutral until these signals go off or a break of these structural patterns occur in the SPY or QQQ:
Often times, the vix will retest the break before a further spike higher occurs....
Meanwhile the Advance/Decline line and Money Flow are still not flashing sell signals:
Typically during interim or longer term tops money flow will start to decline as the market continues highers, for example:
Same can be seen often times with the Advance/Decline line... It's been super rare for one or both of these signals not to flash a warning sign before a larger sell-off incurs. One of those rare occasions was January 2018 on the large melt-up. Something that certainly can't be looked past with the huge run up off lows the market has had in just months.
Remaining neutral until these signals go off or a break of these structural patterns occur in the SPY or QQQ:
Comment:
The horrid internals continues...
Comment:
Gonna take some profits here.....
-Still obviously some more room to move higher here, and I'd want to see the wedge break before shorting, but 3 of the past 4 days have seen the AD line decline, meanwhile the SPY has gone up each of those days.
-Money is also not flowing back into the market on this move up.
Gonna take some profits here.....
-Still obviously some more room to move higher here, and I'd want to see the wedge break before shorting, but 3 of the past 4 days have seen the AD line decline, meanwhile the SPY has gone up each of those days.
-Money is also not flowing back into the market on this move up.
Comment:
Today has been the most impressive of all on this run up...SPY up 1% and another day where more stocks declined than advanced.....
Comment:
Meanwhile FB, AMZN, GOOGL, etc are all in these breakout patterns....shorting this market as long as those are strong, is like trying to short tsla right now...
Markets go up....money flows out....more stocks declining than there are advancing...
Be interesting to see if the same repeats tomorrow, or if internals catch up...