• Comments for December 6, 2017

    Yesterday, the markets did not feel as negative as the price trend was showing.



    This was especially true for tech stocks, which showed much resistance to sell later in the day.



    Semiconductors display a small positive divergence and even small caps looked slightly bullish.





    In the index investment front, neither the QQQ nor the SPY were under intensive selling.





    The main negativity for equities can still be found in the Treasuries/yen, whihc continued to attract buyers.



    On a longer term picture, the ratio of sectors that are in a short wait mode is now at 50%, but the number of days until a general market short signal is issued is still well above 0.



    On a side story, the Brexit drama weight on the British Pound, but weakness is being bought.



    Conclusions:

    The Money Flow points to an imminent reversal. It does not show panic selling here.