James: In 1987, the Dow Utilities started the down move followed by the Transports and then the Industrials. (My indicators)
This move down has been lead by the Dow Utilities, followed by the Dow Transports, then the Russell 2000. Then followed by the more widely watched indices. (My indicators) (no order: SPX, INDU, NYA)
Today's intra day retraces, with divergence between indices, suggest to me that the S/MM are unloading accumulations during the intra day moves. However, I think the market is due a close up. If only to decrease the negative rhetoric on this move down!
If this is only a correction, I am not looking for a bottom until we see a capitulation day such as 10/28/97, with discernable big block trades at or near the lows of the day in Big Cap stocks!
Regards,
LG
PS: I am not suggesting correction or bear, at this stage! |
