The NQ100 were still leading buyers, mostly due to the NQ8.
Tech groups attracted good money, while small caps stayed rather low.
Small caps have done almost nothing since last December.
XME (Materials) pushed higher yesterday. The selling at the end of the previous day reversed into a buying opportunity.
Note below that GDS experienced an almost parabolic move higher.
This is just an illusion engendered by a tight trading day. When we look at the past five days, yesterday's move was almost unnoticeable.
Technical traders will have noted that the SPX formed what is called a bearish Harami pattern that in theory defines the top of uptrends. That is also completely illusional. Shorting such a pattern in the current liquidity and algo driven environment is a recipe for failure. This pattern is so well known by algos that in most probability weakness will be faded by algos. Anyway, it is best not to trade patterns that date from the prehistoric ages of trading.
I noticed that the Ratio of sectors on a buy wait mode has increased in the past two days, while the price was bouncing. This tells us an important piece information: large investors are selling the bounce.
Among the weak groups and sectors, we can see that Biotech and Financials have been attracting much selling.
Among the financials, the subsectors below look the weakest.
Conclusions:
Large investors are selling the bounce. That is all that matters for now. However shorting weakness is not a good idea. Best to wait for a bounce and short strength.
