Note per my Twitter update how session lows around 10:15 AM CT in the ES contract were not confirmed by fresh lows either in the NASDAQ 100 or Russell 2000 Indexes. We also didn't see fresh lows in the Industrial, Consumer Staples, Consumer Discretionary, Health Care, or Financial ETFs.
When lows are so broadly non-confirmed, it's often a sign that a relative handful of highly capitalized stocks are dragging the large cap index lower and that the broad list of stocks is not displaying commensurate weakness. By tracking a variety of indexes and sectors, we can be prepared for likely reversals at those points, as the market is losing its selling impetus.
.
Posts
