Yesterday's market definitely was a weak day, but the pace to the downside during the day session was slow relative to the down markets of the last 6 months. As can be seen in yesterday's 5-minute chart, the market could not make it completely to the 10-day average distance that the market travels from the 0930 ET open. Also, the market has yet to correct 38% relative to the last up Impulse Wave. So, yesterday was a weak day, but not a panicky, massive sell off.
Interestingly, the market started accumulating Discretionary Stocks over Staple Stocks after the open. Typically in a down market, the Discretionary / Staples Ratio will lead the market down. Yet yesterday, the Discretionary Stocks was the better performing sector of the eight sectors.
Overnight, the market has corrected about 38% of yesterday's down Impulse Wave. The 800 area is still resistance, and is also the 62% correction point of yesterday's Impulse Wave.
NAPM Report at 0945 ET, and Consumer Confidence Report at 1000 ET.
Charles
No comments:
Post a Comment