Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Today is a particularly nasty session on quite a few fronts. Aside from the action in precious metals, the breakout over 6 year highs enjoyed last week is being reversed today on the S&P 500 in a particularly “Lucy pulling the football from Charlie Brown” type of action. This index is already back to last Tuesday’s levels. The light blue line is the key one as we have seen 4 major bounces off it since November…
And small caps are being beaten to a pulp. The Russell 2000 remains the weakest of the major indexes of late. It is threatening to break recent lows already, and is at the same prices it was in mid February. Two months of chop which indicates what the majority of stocks are doing even as the larger cap indexes grind up.
There is a lot more volatility of late as we are seeing both sharp selloffs and sharp rallies in very tight spaces of time in the general market. It remains a market without much memory of the previous few days. For Fibonacci fans the S&P 500 retraced 50% of the move from the 4/5 low to 4/11 high in the past 2 sessions.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
