If you glance at the indices, you wouldn’t realize the market is actually fairing poorly today. 

  • Breadth is actually negative
  • VIX is trading 3.5% higher
  • The percentage of stocks trading above their 40-day moving average is declining. 
  • Technology is trading lower
  • Small Caps are in the red

    • YET…

    SPX is trading 8 points higher, and the Dow is trading 150 points higher due to the spike in high priced stocks like Goldman Sachs (GS) and Boeing (BA).

    Perhaps we might see some end of the year profit taking, and if we do, the list of short setups below could provide some excellent trading opportunities. 

    For now we have the divergences in place, but as has been the problem for the bears all year long, price never seems to follow. So wait for price confirmation before you make your move. 

    Here’s the bearish watch-list I am following: 

    Print Friendly, PDF & Email

    Related Posts