Good evening StockBandits!
The market gapped higher this morning, but true to form, that gap was quickly filled as traders rushed to fade the move. It set off a somewhat choppy trend day lower, with the more speculative RUT and NAZ leading the way on the downside with declines of 1.9% and 1.4%, respectively.
The bulls are looking a bit feeble at this stage, having dominated this market for a number of weeks coming off the October lows into year-end. However, since then, they’ve lost their mojo and can’t seem to get out of their own way. Aside from the news flow (which I view as ancillary anyway), technically we’ve seen some concerning developments. Not only are we seeing declines happen in streaks again (today made 5 in a row for the second time in less than 3 weeks), but this market can’t seem to hold a bid.
Gaps are still being targeted with success, and today another pair of them were filled. There are plenty more, although the mid-December lows mark the lower boundaries of the current trading ranges and at this rate may very soon be tested.
** With the market being closed Monday in observance of MLK Day, the usual Sunday evening report will instead be posted on Monday evening.**
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
