y: Mark Hanna
Posted on: April 17, 2012 at 9:05 am
Tags: Technical Analysis
This morning futures are up for (insert convenient reason here) 
LMAO,,,,,,,,. The reason of the day is a German investor confidence report but if that's the main cause, it was a market that wanted to find an excuse to go up short term. Futures took a U-turn overnight from down about 5 to up about 5 and have added to that gain as the morning progressed. That's a fortunate development for the bulls as the situation looked quite dire with the break of 1370 in the overnight session. Recall late last week I said the area between 1370ish to 1390ish is a "white noise" area and not much stock can be taken of what happens in that area. However an open well below that level, as it looked like about 6 hours ago, would not have been a positive.
Pulling back a bit, yesterday's action was among the most tricky of the year. The market gapped up – and then immediately gave back all those gains within the opening half an hour. That usually leads to a very bad day. Instead the market moped around, and only the NASDAQ was hit. While the DJIA actually was up quite strongly. And S&P 500 flattish. A strange divergence indeed. The NASDAQ has been the leader of the pack in 2012 and hence it sure needed to 'catch up' (in this case down) to the rest of the major indexes – yesterday was one step towards that goal.
The market "generals" began getting hit in earnest last Friday and that continued yesterday – headlined by Apple's 4% drop. The "teflon" stock is now down 5 sessions in a row, and might actually be short term oversold if you can believe it. But let me call your attention to the bottom of the graph – see that heavy volume? That is quite ominous to me. It speaks of distribution.
http://marketmontage.com/2012/04/17/potential-bear-flag-forming/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+marketmontage%2Fxyz+%28Market+Montage%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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