Yesterday I noted the markets may be in the same pattern as they were about a week and a half ago. Then the markets made a big jump followed by a meandering move until the average hit the 10 day SMA. So far we're repeating that pattern. We jumped a few days ago and have drifted since. However, the lack of a convincing follow-through after Monday's jump should raise some eyebrows.
On the five day chart notice we have two possible triangle consolidations. Also note the average traded to the 38.2% Fibonacci level and used that level as a center of gravity.
The QQQQs -- which have been performing well lately -- may have broken their upward trend today. This shouldn't be surprising. My guess is some traders are ready to take some money off the table and this may signal it's time to do just that.
Large cap stocks have been heading lower for the last few days. Yesterday I posted a relative strength chart comparing the large, mid and small cap stocks to the SPY and the large caps were definitely the best performing. Over the last few days my guess is traders are again taking some profits off the table.
The transports still haven't confirmed this recent rally.
