The ES registered a range high distribution day with price recording a new high, but settling lower on the day. Note that while this leaves a sloppy candle on the chart, this was not a classic key reversal day where price settles below the low of the prior candle. Keep a close eye on the short term trend defining 10ema (blue).

Below is a weekly chart of the ES that clearly shows the importance of this price area. There are a number of technical features. The chart is working on 9 weeks up in the Seeker setup and the prior sell signal is still in effect because there was no downside 9 bar setup and the risk level hasn’t been broken.

The NQ made a new high on the move but closed lower on the day. Like the ES it was a nasty candle but not a key reversal candle. The 800lb gorilla in the room, read AAPL, did record a classic key reversal day and continued downside momentum will weigh on NQ like a Nantucket sleigh ride.

The 10-day Trin is close but has not reached the overbought threshold.

Multi sector daily chart:

It’s time to start monitoring the relative performance of the NDX vs. the SPX very closely. If the NDX becomes relatively weak then stocks are ripe for a correction.

The SOX was the top gun on the day and recorded 11 days up in the Seeker count.

The BTK was higher on the day. Set an alarm for a break under the 10ema.

The BKX was flat on the day. The level to watch is the 8/8 Gann level which was previously resistance and now critical support.

The OSX looks like it’s ready to roll. Price settled below the 10ema and the MACD is now showing sell.



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