We will need to see more downside before this formation is confirmed so this is just something to keep an eye on.
Problem is we have two key sectors that have been drivers behind this rally and that are now in trouble. $SOX/SMH and $RUT/IWM. If these two key sectors don't start to show some strength, and soon, then their weakness is likely to bleed over into other sectors. For the $SOX there is now a bearish cross of the DI lines on Wilder's ADX and a close below 497.30 before a bullish cross of the DI lines would confirm a 'sell' on this key index. IWM is following close behind.
We'll need a nice big phat bounce Wednesday and Thursday to undo some of the damage these two sectors have suffered over the last several days.
All IMHO, of course.
GL
Problem is we have two key sectors that have been drivers behind this rally and that are now in trouble. $SOX/SMH and $RUT/IWM. If these two key sectors don't start to show some strength, and soon, then their weakness is likely to bleed over into other sectors. For the $SOX there is now a bearish cross of the DI lines on Wilder's ADX and a close below 497.30 before a bullish cross of the DI lines would confirm a 'sell' on this key index. IWM is following close behind.
We'll need a nice big phat bounce Wednesday and Thursday to undo some of the damage these two sectors have suffered over the last several days.
All IMHO, of course.
GL