3309 Drysdale Ct
Edwardsville, IL 62025
You are correct. There was huge disconnect in the market and my
guess is todays move was just a dead cat bounce. Bonds rallied,
yieds dropped, yet xlf and kbe traded up. Oil went down after
initial pop, yet XOM closed up. Summation index was -1311
compared to yesterdays -1265. With the move today, I would
have expected Summation Index to have turned more positive. I
would expect us to probably retest the lows we made last week and
probably test SPX 200DMA.
Also notice Transports to Dow jones All indicies are just 2 or
3% from all time highs but ITR trading close to Aug lows. Markets
are very good at sucking people into it at the extremes. Make
people buy at the top and short in the hole.
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