The Qs painted a doji, the picture of indecision among Japanese candlesticks. The close was right in the middle of the short channel, and just above angle support and the trailing stop-loss level. All this was accompanied by weakening momentum.
So far, this is shaping up as a rolling correction (during which market internals readjust but price remains in a trading range). Should support get broken, however, things can get ugly quickly:
On a side note, it was a bad day for the transports, which made a new low:
while the industrials are struggling to keep the uptrend alive.
The industrials closed within a few points from the March 2 high.
Out of the 30 components, 13 are trading higher, with MSFT leading the pack:
MSFT, IBM, JPM, CAT, GS, GE, NKE, DIS UNH, CVS, MRK, VZ, V
and 6 are trading in the middle of their March - May range: UNH, AAPL, XOM, MCD, UTX, MMM
The transports, however, are still trading at the bottom of their '15 range:
After all the wild gyrations during the past few days, the gaps and the fills, SPY has quietly realigned with the 1 x 1 uptrend angle as it's nearing the end of the bullish natural cycle, and the top of the '15 range:
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