Wednesday, May 06, 2009
When Market Moves Lack Broad Participation
One of the things I try to do with the tweets and intraday blog posts is point out recurring patterns that can lead to good trades. Here we see the S&P 500 e-mini contract (above) making new highs in the afternoon on the heels of strength among financial shares. Those new highs, however, were not confirmed by fresh highs in the NASDAQ 100 Index, the Russell 2000 stocks, or the XLB, XLY, XLP, or XLV sectors. That has led to a retracement back into the day's range, with the day's volume-weighted average price (around 908.50) as a logical target.