The ES futures gained 11 on the day but settled below the 200dma after trading above it—this is issue one. The pattern is at range high off the recent 1150 low but today’s action settled well below the open recording a camouflage sell signal—this is issue two. These are two real concerns for the bulls to chew on for Tuesday’s session.
NQ futures also recorded a range high camo sell signal. Price was up 21 on the day but may traders will interpret this as a distribution day with key resistance above.
Multi sector daily chart:
The 10-day Trin is back into the neutral area but is still far from overbought.
The Dow/gold ratio is near the 2009 breakdown level at 7.10. A close above this level would be the first indication that long term folks are adding risk to their portfolios.
The put/call ratio has yet to record a climatically bullish reading.
The NYSE cumulative advance/decline ratio remains strong implying that the Q2 high will be seen again.
The BKX was the top gun on the day. A close over 42 would qualify the November low as a higher low and be overall very constructive for the market.
The OSX was stronger than the broad market and continues to be a leader. The reverse head and shoulders pattern is still intact.
The semiconductors continue to lag. The index posted a camouflage sell signal.
The BTK is still a laggard and seems to be a source of funds.
The XAU was the true source of funds on the day. Price used the Gann 4/8 level as support. This is a very key area for the gold bulls to hold.
The OSX continues to lag crude futures which is generally a negative condition for both.
SOX continue to bearishly lag the NDX.
The XAU has broken and bearishly diverged from gold futures.