Crikey .....I thought the SPY looked nasty yesterday but they...

Crikey .....I thought the SPY looked nasty yesterday but they didn’t have to punish it quite so hard. I don’t think it is the end of the world but we have been rolling along in a small range for so long so just a bit of a reality check. 2090 looks to be where we can have another think about the SPX.

One chart that is a bit of a worry - I calculate an Advance/Decline but on the actual value of shares advancing and declining on the NYSE. It broke its uptrend last night. Usually that means that it has to do some work before finding another spot to bottom out.
Also the NYA which I have often mentioned as my favourite index in the US – it had been trading in a very tight triangle. I was concerned yesterday that they hadn’t been able to break it topside when they tried so of course, today, the downside was the easiest path.

The pound has also been punished overnight - again. Can’t help feeling that the EU wants to make life as difficult as possible for the UK to frighten those restless members that think they might follow Brexit. The pound looks to be the main casualty in this environment. But currency moves like we are seeing always frighten me. Too easy for “accidents”. This worries me a bit when we are looking at a correction in markets.