Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
… at least today.
The weakness in high beta glamour tech this morning was definitely a leading indicator for what was set to come. A lot of the “go to” momo names are being hit today, as many are quite extended. Bonds are catching a bid as we see a double bottom in the TLT ETF chart. U.S. bonds have been in a multi year bull market, so one should not expect them to roll over and die with zero fight. The nature of their bounce and how equities respond will be very telling information.
As for the S&P 500 it was rejected at years highs on its first attempt; no major shock or change in development. Some digestion would allow for another run at those highs from a less extended vantage point. On the flip side, the bears can point to a series of unfilled gaps below created by Draghi talk. There is still 50 minutes to go and markets are threatening to go visit yesterday’s low – a break below that would be a short term poor technical signal. (“outside day”)
EDIT 3:16 PM – yesterdays low has been broken in the S&P 500, creating a potential outside day.
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