Sunglasses Wednesday, page-2

XJO down modestly today -0.21%.



The XJO saw a sharp drop-off at the start of trading, some of which was recovered in the morning session.  From there to the close it was pretty much a sideways trend.

Breadth was poor.  AdvancingVolume/DecliningVolume was poor at 0.59.  That could be a contrarian sign that the market is about to rebound.  Anything below 0.6 is a contrarian signal.  So maybe we're about to see a rebound, but don't count on it.  We could see a couple of days of poor action before a rebound.

The relatively benign result today was a result of strength in the XXJ (Financials).  

I've talked about the relationship between Resources and Financials yesterday, and how they often have a counter-vailing power which results in some equilibrium in our market.  Today, Miners were weak:



XMM down -1.22%.  That's not a disastrous event, as XMM remains in a side-ways trend and holding at the 50-Day EMA.

XXJ had a marginal rise +0.16% which off-set the big fall in the Miners:



Today's action in XXJ occurred at a major horizontal support/resistance line.  But this is appears to be early in a pull-back according to the indicators.  So we can expect more downside in Financials.

So we're on a see-saw, XXJ/XMM.  XXJ has more weight on this see-saw, so bet on some more down-side in the near future.

RB