INDEX UPDATE
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The MASH, SOX, NWX, IIX which were down yesterday are up today.
The XAL(AIRLINES), BKX(BANKING) - which were up big yesterday are down so far today.
The RUT is up again, although slightly.
We definitely have divergence, which is healthy. Technically, I conclude that the overall market, all sectors, are ready to move up; however it will now revert to the fundamentals - ECONOMIC NEWS/INTEREST RATES. Watch the signals given by IKE as he observes the movement in the BONDS. I can tell you that I most definitely will.
The following comment is somewhat subjective, but is based on the technicals. I believe that the major signal to watch for a major pullback in the overall market is the RUT. It is not because it is the leader in the overall market, but in light of the market wide divergences it would be a strong signal that the overall market may be overbought technically. This is only my opinion and far from being conclusive.
Seeya |
