Canoe Tuesday, page-2

XJO down modestly today -0.24%.  It was up at the opening, but steady selling throughout the day saw the Index finish on the negative side.  The intra-day selling is evident in today's candle.



The short-term trend channel remains up, but CCI and RSI5 have given short-term sell signals.  Expect more downside.  But that big horizontal support level might just hold the market there.

Four sectors out of eleven were up today.  Energy +1.6% was the big winner after the big rise in America on Friday night.  Materials also did well, up 0.9%.  The other sectors on the plus side were only up marginally, Consumer Discretionary and Utilities both up +0.1%.

It looks like we're on the old roller coaster with Resources on the plus side and XXJ(Financials) on the negative side.

XXJ down -1%, with a bearish engulfing candle.



And that bearish engulfing candle has come right at the 200-Day EMA.  Indicators are showing short-term sell signals.  Expect more downside.  

Sometimes, this business is just too easy.  Of course, just when you think that, the market hits you with a double whammy.  

If Resources/Financials continue as countervailing powers, the pull-back in the broad market shouldn't be too bad.

RB