Thursday, June 18, 2009

06.18.09 - Index Divergence

There was a quick morning markup in the S&P500 on the Jobless Claims and Philadelphia Fed numbers. However, after retaking the five-day moving average, the move was capped by SPY R1, and there has been a general lack of participation by the Nasdaq 100 (QQQQ) and the Semiconductors (SMH), in particular. Also, I always hate to see the Discretionaries trailing Staples so steeply.

Nevertheless, internals are mostly positive, if only moderately so. Perhaps if we can continue to stabilize here above the VWAP at the mid-day, the bulls will be more inclined to take on some risk and take us out of oversold into expiration Friday.

Never Investment Advice

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