Eat what you want Friday, page-2

XJO up marginally today +0.18%.



Today’s candle is a “shooting star” which is usually seen as bearish.  Coming at a major resistance level, the impact is greater.  Indicators are showing negative divergences.  Watch for a downside move.

Today’s flat result hides a mass of big sector moves.

XEJ +2.4%.
XHJ +1%
XDJ +0.9%
XTJ -2%
XIJ -1.6%
XNJ -0.6%.

That’s a picture of a market with lots of internal convulsions.

What happened to the most important sector XXJ (Financials)?  Here’s the chart:



It sold off on an intra-day basis and finished flat -0.02%.  It remains in its sideways trend.

Negative divergences on the indicators suggest a downside move.

I’d wait and see how this breaks from the current sideways consolidation.

RB