Financials and Energy Are Your Tell

We’re all talking about the action in the Russell and the Nazzy. Here are my thoughts on that. The big question is the $SPX and NYSE. Will the latter acquiesce to the weight of the Russell and Nazzy and break lower? What will bring it down?

The industrials still look bullish ($XLI), however the one sector that could weigh the S&P down are the financials. The ($XLF) is forming a right shoulder of a head and shoulder pattern and as you would expect, the underlying stocks in this ETF look fairly abysmal.


A pullback in energy ($XLE) would also contribute to a breakdown in the ($SPX). Energy is still in a very bullish uptrend, but extended in my opinion.


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