A chop fest
Market has again settled down in choppy range. Selling in momentum names continues and most stocks are now below their 40 day moving average.
The Worden T2108 indicator is at 44.18 indicating only 44% stocks are trading above their 40 day moving average. Due to persistent Fed support breadth divergence has not mattered much in this market. Deterioration in breadth has been followed by aggressive dip buying . Many of these V shaped recoveries have only made marginal high.
For swing traders the action is good. Pockets of strength continues and breakouts on recent IPO's like TWTR, VNCE, ZU, QUNR continue to work. As the year winds down the chop fest might result in another rally attempt with marginal new high.
The Worden T2108 indicator is at 44.18 indicating only 44% stocks are trading above their 40 day moving average. Due to persistent Fed support breadth divergence has not mattered much in this market. Deterioration in breadth has been followed by aggressive dip buying . Many of these V shaped recoveries have only made marginal high.
For swing traders the action is good. Pockets of strength continues and breakouts on recent IPO's like TWTR, VNCE, ZU, QUNR continue to work. As the year winds down the chop fest might result in another rally attempt with marginal new high.
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