While the China and emerging market ETF’s are breaking to the upside today, the likes of SOHU SINA are selling off. In addition, Australian-based massive global materials miner BHP is breaking down in a nasty way. Thus, as we settle into our usual afternoon grind it is tough to make much of the many curves the market is throwing our way.
I continue to refer to the small caps in the Russell 2000 Index, in terms of gauging the market’s next meaningful move.
I had previously said that 1,180 was about as far as I think the rally could go before bears would no longer be able to claim a potential topping pattern is still in play for all of 2014, with 1,082 being the breakdown trigger below.
That continues to be the case today, with this morning’s strength stopped around that 1,180 area.
The small cap ETF, for what it is worth, also seemed to have had a “flashy” print earlier today.
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HYG not healthy either as its trading back below 200, 50, and 20 DMAs
Good eye, Mark.