SPX made a LH and LL and closed in the negative that in itself is negative for the markets for tomorrow. RUT on the other hand made a HH and HL and closed in the positive for the 4th day in a row that is positive for the RUT market. This is a very good divergence but no need to jump to any quick conclusion. The banks were noticeably weak. I have four charts
On left is FAZ hourly. I haven't looked at this in a while but with the banks struggling it is worth looking into. It is in a narrow channel inside a bigger declining channel. This has happened before and the top is near 13.5. However if FAZ blows the top line and burst out of it then I would seriously think about buying it. But for now I am content watching it. Should it mildly go out and come back into the channel ( This is what I think should happen) I will buy its evil twin FAS.
The next is SPX hourly top right. It is the same from yesterday but zoomed in. From the way spx ran up from 1184 looked like it found a bottom. If that truly is the case then it should see a big rally as a follow thru and close well above 1210. This has some legs. The third chart on left is TZA. This caught my attention because of the nature of the decline today. It hasn't caught any traction at all and keeps making LL. Not a good sign. On the complimentary side is TNA my next chart on the right. I see this going well beyond 61 to may all the way to 64.5 in the next few days. The move from 55.57 to 58.44 was quite impressive. Needless to say I am not bearish. I am not trading this week but watch the markets when I can. I am bullish
Thanks for visiting my blog and offering your encouragement.