Photo: midnightglory on flickr
The market is sinking after being up earlier in the day.Jonathan Krinsky, technical analyst at Miller, Tabak sees an ominous pattern emerging for the bulls.
In an email, he writes:
So far pretty uninspiring action for the senior indices. NYSE Composite volume is tracking at about yesterday’s pace, breadth is about flat, and all the senior indices are in the red. What is likely most frustrating to the Bulls, however, is the way in which the market has responded to higher prices. That is, up openings have attracted selling, as opposed to more buyers. Since the September 14th high, the SPY has had 12 trading days. On 9 of those days, the SPY has recorded its high for the day prior to 2:00. Today would be 10 out of 13. Further, today would mark the 9th day where the close is lower than the open.
On the other hand…
As frustrating as that may be, we must put this action in context. The S&P was up 16.5% from the June 4th lows to Sept. 14th highs. There are surely going to be investors wanting to lock in profits. Yet as ugly the action looks and feels, the market has still not broken any significant support levels, and is still only about 2.3% off the highs.
Just something interesting to note.