11/8 Recap

We’re having a small cooling off today as we’re now pretty much sideways the last 4 sessions as the short term moving averages are catching up. I’d like to see us tough that blue line, the 8 ema, as a short term bottom whether its us coming down or it coming up doesn’t matter, just a part of normalizing after such a rapid move up.. Of concern right now for bulls is the fact we are putting in a bearish engulfing candle on the SPY today for now.

Tech stocks don’t look as bad with the QQQ weak but not forming a bearish engulfing today. In fact many of the large caps like Apple,Microsoft,Nvidia, and Google are green today.

The real laggard at this moment is the IWM, the small caps have pulled back quickly after that silly run last week with the IWM back under 170 in a hurry and breaking below the 8 ema for now.

Oil continues to crumble now down to 75.50 and that massive XLE put buyer earlier this week nailed this trade. Oil looks to have a bottom around 72. This move if it sustains will have a profound impact on margins for so many names.

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