Hello Everyone,
Quick Comments
: We finally saw a small shot across the bow today especially in the afternoon. For the day the major indexes closed down -0.9 - 1%. For the week we have nice losses across the board with the Dow -1.6%, the SPX -1.5%, the Nasdaq -2%, and the Russell 2000 -3%. On Monday's newsletter I pointed out that TZA looked bullish, and that the VIX had closed up along with the SPX (which is generally a negative for the market, and of course the negative breadth. Last night in fact I sent out a video discussing the % of stocks in the Nasdaq above their 200 day MA and showed some past history.
Short term the market is oversold with the NYMO McClellan Oscillator (NYSE) closing below its lower Bollinger Bands, and the NAMO (Nasdaq) closing a 2nd consecutive day below its Bollinger Bands.
Also a couple of the McClellan Oscillator systems went long today and one of the SPY reversion to mean systems, which I'll discuss first.
Matt
