The bulls showed their vulnerability today. The falling dollar/rising yen looks to extract another round of pain from stockholders in coming weeks. Video update inside.
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Category: Market Internals
Weekly Update
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This rally has seen some impressive stats, but the S&P breadth oscillator is not one of them.
Oil vs Yen
Oil and dollar yen are trying to pull stocks in different directions. Oil is winning that battle short-term, but this oil rally comes with a likely expiration date.
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On the Nature of Tops
There’s quite a bit of short-term upside momentum present. If a top forms now, it will need to be a spike-type reversal. Now my general observation is to expect spike lows and rounded tops in bull markets, and spike tops and rounded lows in bear markets.
A spike top now will benefit the bears as it helps confirm the nature of the larger trend.
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Weekly Update
Is it roll over time?
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