On the left side of Finviz's News page there are headlines from mainstream media sources, and on the right side are headlines from blogs. Just over an hour before the close,. I saw a headline from Zero Hedge about an oil pipeline in Saudi Arabia on fire, nothing on the left side. Oil, hwever, had started taking off and the market rally stopped dead in it's tracks. There was nothing on the left side until after the close, when Bloomberg reported the story (and the Saudi denial). There has been nothing since then. If this story is true, we have a problem here, and a market that looks like it is topping might just be looking for a reason to start selling off. If not true, then a bunch of oil traders are going to get burned.
The SPX chart s pretty straight foward: the NDX chart is not. This, if anything, looks like it is not only not topping, it looks like it is going higher, maybe a lot higher.
conversely, the NYSE composite looks like it is not only lagging, but has totally run out of gas. MACD is dropping pretty fast in comparison to the others, and despite a decent day today, the momentum is down. There is not a lot of distribution here, but at least there is some. Between this and the Russell 2000 we will probably see the first signs of a real correction.
What is really amazing is that the percentage of stocks on the NYSE above the 50dma, badly overbought a few weeks ago, has now dropped back to oversold on stochastics, without even breaking the 75 barrier. That is a strong market, and I would not be surprised to see this start moving up again.
The same on the Nasdaq, looking even stronger despite the big drop in stochastics. I keep expecting a correction any time now, but I am not seeing it here.
There is no follow up on the Saudi oil pipeline story, so apparently it was a false alarm. If so, crude oil futures are still holding up (they did briefly cross 110, but have settled down to 108). If not, and there is a supply disruption, that will be the trigger for a correction, maybe a rather severe one. We will know more tomorrow.
I will have the new highs update shortly.
