Yeah, I know, the bulls, even with today’s weakness, still have a firm hold on this market.
But there are some conditions underneath the surface that suggests conditions are weakening a bit. Look no further than the small caps which has led this market higher all along. Today they are hitting new low after new low on the intradays. Stocks as a whole are declining in mass and the small and mid-cap stocks are starting to show somebearish candles at key resistance levels.
The only problem is some of the large caps are not acting all that phased by the market today and are keeping the S&P, Dow Jones Industrial and Nasdaq much closer to break even than what I would expect.
Then of course you have tomorrow’s FOMC Statement. Hardly any are expecting a rate increase but you never know and with the election season, if the Fed is truly serious about raising rates, it doesn’t get more opportunistic to do so than tomorrow. The last thing the Fed wants to do is sway an election with its monetary policy by raising them closer to November.
So below are the short setups that I am currently watching and won’t hesitate to pull the trigger on some of them if conditions start deteriorate further.
