Weaker Tops
I have to ask myself how long can prices continue to climb when diverging indicators like the MACD, Stochastics, and ADX put in lower highes with each swing high in stocks?
Is this house of cards due to roll over and do you want to be invested when this happens? Case in point, look at $SPX verses UUP's Dollar ETF. Notice how each swing high in stochastic is lower than the previous one?
Now let's look at the number of S&P 500 stocks above their 50 day moving average $SPXA50 and 150 day moving average $SPXA150. Do you notice we are putting in lower highs with each swing high in stocks?
Lastly if you want to know where the market is faltering here's a look at the micro cap stocks. Where's the swing high like we see in the majority of other charts? They took the biggest hit on the last down turn, followed by mid caps then large caps.
Best to you, I'll gladly sadly sit in G till we get confirmation of a direction... Jason
