Here's an afternoon snapshot of the ES marketplace position that I took, highlighting the Market Delta screen. At the fourth dimension of the upside breakout, nosotros had favorable NYSE TICK as well as expanded book lifting offers. What I noted via Twitter, as well as nosotros couldn't encounter from those indicators, was that several sectors were non making fresh highs, including NQ, XLI, XLY, as well as XLV. As we've seen inwards the past, when nosotros convey multiple sectors non participating inwards a marketplace position making novel highs or lows, that deed oft reverses. That's what nosotros saw inwards the afternoon (chart above), every bit the breakout bulls were trapped as well as had to comprehend their positions. That led to a squeamish merchandise dorsum below VWAP (red business on chart).
As of import every bit it is to follow one's ain stocks or indexes closely, it's but every bit crucial to last aware of the context of marketplace position moves. Moves that are narrow inwards their participation are to a greater extent than suspect than those that elevator or drib the sectors inwards unison. As my schedule alongside traders allows, I volition highlight participation inwards my tweets (free subscription on my Twitter page), both yesteryear tracking sector functioning as well as yesteryear reporting on the participation of the xl stocks inwards my handbasket (highly weighted issues from each of the viii sectors I track). More to come...
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