The Ps began to slide a bit of their wedge.
The Quack gapped higher but reversed to close poorly and flat for the day.
The Rusty also started strong but ended weak. It lost over ¾% for the day. This action here is more indicative of what happened internally.
Most areas tried to rally but came right back in–Banks, Transports, Energy, Chemicals to name a few
Even areas that have been improving like the Metals & Mining were hit hard.
Emerging markets (EEM) and International shares (EFA) also had the start strong finish weak pattern.
Although they finished off their worst levels, Bonds ended down fairly hard.
The above suggests that a correction may be underway.
So what do we do? It is not the end of the world. Yes, the market is losing steam but so far, it only appears to be taking a breather. Do avoid getting too aggressive on the buy side until you see how things shake out. In many cases, simply waiting for an entry will keep you out of trouble when the market goes into a corrective phase. I’m still seeing a few decent setups but, at the risk of beating a dead horse, make sure you wait for entries.
If you are not saving lives, building buildings, repairing transmissions, or doing other great things, come to the chart show. I am going to flesh out all of the above in detail.
Futures are very weak pre-market.
Best of luck with your trading today!
Note to PETA: No horses were actually harmed while writing this column. The horse above was acquired through my clip art provider by searching for SLEEPING horses.
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