Indexes are masking what is happening below the surface. They are approaching new high but breadth does not support the new high. If you look at the Market Monitor Breadth figures, you will see that they are in negative territory. The damage done by selling is not being reversed. Such divergence often leads to lower prices.
If you look at most sectors, they are in confirmed downtrend and the bounces have not reversed those downtrends yet. Technology, financials, retail, biotech, software are all in correction mode and the weak bounces on them so far do not show bottoming action.
The defensive sectors and energy are best performers currently. I will look for setups on them for swing trading.
If you look at most sectors, they are in confirmed downtrend and the bounces have not reversed those downtrends yet. Technology, financials, retail, biotech, software are all in correction mode and the weak bounces on them so far do not show bottoming action.
The defensive sectors and energy are best performers currently. I will look for setups on them for swing trading.
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