29 Jul 2013

Perhaps the weakest of todays sector is the "Financials".  We haven't seen this divergence in a while.  The financials managed to make lower lows from last weeks low.  As for the SPX and other indexes, they stayed well above last weeks low.  Some say where financials go the economy follows.  Maybe its time for a double check of which banks are healthy and who might be likely to take your money from your piggy bank.

Todays move in the SPX resulted in another whipsaw pattern and hard to say which EW pattern is emerging.  But on a 60min level prices seem to be stuck between the 20ma and the 75ma.  The last time it did this it accelerated from a bottom put in just a few weeks before on June 24th.  Now it is again supporting above the 75ma on a 60min chart.  So be ready for an acceleration.  Which direction will be based on our indicators.

Main-Trend: UP
Short-Term: DOWN