The small caps underperformed yesterday after over-performing on Wednesday.
Interesting to see that the Cumulative Ticks was much weaker yesterday. This is a sign of small caps investors selling in strength, probably to continue booking tax losses. This is a pattern that will probably continue until year end.
On the other hand, the Money Flow on non-SP500 companies does not show renewed weakness.
The NQ100 Future displays a whipsawing pattern, whihc by definition is non-directional.
Some sectors such as the financials and the materials sector display positive Money Flow divergences.
Interesting to see below a weakening of the 10Y rates, despite the Fed stating a more bearish tone in its message of Wednesday.
I believe that the main reason behind this move is the $B150 increase in the Reverse Repo activities since Monday.
This move should have been positive for Cryptocurrencies, but we can see below that they remained weak. I suspect that a deeper rug pull could occur if Bitcoin closes below its 200MA... and
I do not see the pattern below preventing this to happen.
Bitcoin miners such as MARA still even look weaker compared to Bitcoin.
Gold doesn't seem to attract money here either,
while the PM sector displays a more bullish pattern.
Conclusions:
The Reverse Repo operations put a lid on interest rates, which greatly helps equity prices.
I still think that equities will push higher going into end of the Year, although the small caps will continue to feel the pressure related to the booking of tax losses.
Below are a few stocks that continued attracting money even during the selling of yesterday.
