A week ago we had virtually nothing in the way of distribution, but racked up 3 more distribution days in the last 5, showing how quickly things change. While we are still well above the 50dma, I would not be surprised to see IBD call a correction after today. Even if they don't, today was probably a good time to get out of anything that didn't get stopped out. I think a trip to as low as 1292 is a pretty good possibility, and iif it stops there, will still be a bullish development.
Crude oil took a big hit today, but this is also still in the upper half of it's trading range. A hold here will probably send this back up to retest 110, but ultimately this will probably get up to about 117. However, it has to contend with some downward momentum first.
A week ago I was pretty bullish on gold, and it responded with two huge drops. The right side of the base is now history, this will have to do it again, and at this point I don;t think the 200dema will be much help here. On the bright side, the lower it goes, the better, because ultimately this is almost a sure bet to go higher.
This just beats me. I have no idea what is going through the minds of bond traders right now.
Once again I have an un-updated US dollar chart. While I haven't looked at the UUP chart, I can probably safely say this was up today, in fact, probably up pretty big. This held the 200dema very nicely and is getting a pretty strong bounce off it, so this move may have some legs.
It took only a matter of days to rack up enough distribution to cause a correction. While I have no idea how severe this one will be, or how long it lasts, this does not look like a dip buyer's dream. Best case is a few weeks of bouncing around the moving averages, followed by another bull move up. Worst case: the bull market is over, and we are headed lower, much lower.
I will have the new highs update shortly.
