The 2-day ROC indicator for the ES Futures turned negative on Friday. There is usually 1 to 2 days of follow through for this 2 to 3 day cycle. Today was follow through with an increase in range from Friday. Interestingly, the two day downtrend in the ROC was modest at best. However, aftermarket activity so far is breaking short-term support.
On the 30 minute chart, notice how the 13 period SMA of the $TICK pivot crossed the 38 period SMA late Friday. Probably one of the better indicators along with the 2-day ROC to illustrate the short-term wave action of the market.
Most of the morning traded in a narrow range. It was not until the close of the European markets at 1130 ET that selling picked-up momentum as illustrated by the $TRIN.
Cramer is recommending buying banks on dips. Perhaps based on the thesis that buying typically enters the market at the end of July in most years.
Charles
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