Friday’s late day action showed that advances will be met at this stage with skepticism. Remember last week when I said that the small-caps ($IWM) were the canary in the coal mine? They broke out and were able to hold that break out resistance of $118, which now is key short-term support.
The large-cap ($SPY) stocks were lagging the upside push of the small-caps. What was more disconcerting was the fact that large-cap tech ($QQQ) has been the weakest, having lower recent highs.
The market was short-term over bought. But with the big move to the downside in bonds ($TLT), and stocks following as a similar pace late in the week, that has my short term bullishness on hold.
Have a great trading day!
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