NYSE price action has changed over the past few weeks, with the 20 and 50ma crossing in early September. Since that time, we’ve printed lower highs and lower lows. In addition, the trend line from February through the Brexit lows has been broken. We appear to be in a descending pattern, until price emerges above the 9 and 20ema.
Sellers made their presence known on Tuesday, nearly recording a major distribution day. Intraday, down volume exceeded -12:1, fading into the close to -8.00:1. NYMO has registered lows that have previously market inflection points.
During the run up from the February lows, this Elder Impulse chart recorded green and blue bars, with few red bars by comparison. Now we see the opposite, with few green bars printing since the early September highs. Until prices move back above the moving averages and the 20ma moves back above the 50, we will remain in a down trend.
Sector performance for the week continue in the wrong direction for anyone hoping for fresh all time highs. Energy related issues performed the best.
In order for us to start thinking bullish, we need most of the sectors and industry groups depicted below to change colors, as they did in the first week of July.
We will cover this in more detail later today in the weekend video newsletter.
Until then, Happy Trading