On a 10-day scale, yesterday's move was almost invisible. The 20DMF, however, showed a strong negative divergence to price. This shows that large investors are not building long positions.
The US$ bounced, but buyers were hardly present. We would need the Total Effective Volume to cross above its Pink average in order to confirm a trend change.
Gold sold off and is now below its average Pink line.
On the Futures, the Russell 2000 still look weak here.
The e-mini seems to bounce,
while the NQ100 is under pressure. This indicates that the big money might be rotating out of the expensive NQ100 and back to the traditional large caps.
Conclusions:
I still believe that shorting the small caps is the way to trade this market. the IWM/SPY ratio is however still at the bottom of its envelope, which is not a good spot to open short positions.
