Markets Looking A Bit Weaker

All three markets formed a cup and handle formation over the last few weeks. This pattern is usually considered bullish. However, all three markets have failed to break-out in a strong rally.

While there is a gap in the SPY and QQQQ charts, notice the volume has continually declined for the last four days. This indicates people are less and less excited about this rally, which is a bearish signal.





The IWNs never broke our over resistance. Instead we see three very narrow trading days right below resistance. This could mean a consolidation below resistance before a more up. However, the weakness of the rallies in the other two indexes does not help that theory out.