The strongest ends of the market had, for an extended period of time, essentially ignored the price action in the weaker stocks and sectors during this bull run, as well as ignoring the prior leaders which had then broken.
But now the high-flying momentum leaders of this bull are starting to look down at their weaker counterparts and perhaps are now following their lead, to flip the script.
As an example, Dunkin’ has been a truly impressive winner of late, pushing higher on its daily chart while the market around it began to weaken. This morning, though, we are seeing signs of the highlighted rising channel breaking down.
These types of setups, including a few prominent names featured in my Strategy Session over the weekend, may very well represent the new wave of actionable short setups this week.
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