This could be why the emini futures traders are not buying strength here.
The industry group did not gain on the tax news release.
The whole housing sector was also heavily sold due to negative news related to tax deductibility features.
The small caps are drifting lower, but not collapsing.
Note below that the ratio of sectors on a short wait mode is just at the 50% level and the number of days before a short signal is issued is just at 0.
On the Interest rates and currencies front, both the Yen and the 10 Years are bought (this is equities negative)
Conclusions:
Whatever good news that we could possibly count on is now out. I believe that there is a real risk for a pullback here, even though the AAPL earnings will push the NQ8 sector higher. The market will focus on the future, on earnings sustainability and on the general political bickering that we can expect until the bill goes through voting.
