What We're Reading

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There's nothing here that even remotely makes me want to make a purchase. These are weekly shots of the main indexes so what do you see?

We rallied up over weeks like crazy madmen, squeezing out weak shorts and even had the heaviest shorted sectors help out with a short covering rally; getting the weekly into 'overbought' levels. We came up right against the long term column trend line resistance, hit overbought levels...........the weekly is rolling over. Another failure. Sorry boys. So much for that.

Certainly day traders and short-term swing traders will make their long plays but who has time for that............and why go against the trend of 'this' market......which is down. That's rhetorical.

• We know the market is stretched on a valuation basis.
• Don't even throw out the strange valuation approaches.
• We know there's no more QE coming out of Washington.
• We know earnings are a disappointment and guidance has for the most part been completely uninspiring.
• T

Add XLB (basic materials) to the list of diamond top patterns.  But not all diamonds are tops. Some are "continuation" patterns as stocks take a breather before heading higher.  Coincidentally it appears MON (which is a component of XLB) could be forming a large HSB as well (right shoulder now).  Stop below $109.20 if you're daring or buy calls.  Hat tip to my daughter on that one!  *lol*  Yes, it runs in the family.

fwiw it appears $DJI broke to the upside yesterday and XLK is trying to break to the upside on it's diamond today..........ahead of FOMC minutes this afternoon.