Travelling day.
TECHNICALS WATCH
On July 6, I wrote that “My favorite technical analysis firm is getting antsy, as under-the-surface deteriorating breadth measures make the market “increasingly vulnerable” to a short-term correction in a higher-volatility environment.”
Volatility occurred on July 8 without much of a broad snap back on July 9. While market bottoms are events, market tops are processes. If this is such a “process” underway, we are only at its beginning and thus cannot confirm the end of this bull just yet. It could only be short-term problems, potentially to be overcome with renewed buying, particularly in small caps where most of the recent damage was done.
This chart from Lance Roberts illustrates the diverging trends:
Lance also has this money flow chart warning of potential short-term problems:
