Good morning traders. Yesterday I wrote that \u201cI will be watching XLF and OIH as market tells; we need to get some more sectors involved if the rally is really going to have some legs in it.\u201d Indeed financials worked as a very good tell. Its very important whenever the market is a major inflection points that you understand what components are leading and laggings as these are where you should be focusing. I saw the rally was most probably going to fail when the financials showed no upside momentum. \u00a0I looked to short the sector showing the greatest relative weakness. I was able to find that the agriculture stocks were really lagging by quickly by looking at the relative weakness scan on the SMB Radar.<\/p>\n
For today\u2019s action I expect the market to test the 114.60 area to the upside. If we fail to hold above it I will be looking for some continuation to yesterday\u2019s decline at least to 113.60.<\/p>\n
Follow me on twitter for real-time market updates @JoeP_SMB<\/p>\n
SPY levels:<\/p>\n
115.15<\/p>\n
114.60<\/p>\n
113.60<\/p>\n
113.20<\/p>\n
112.60<\/p>\n","protected":false},"excerpt":{"rendered":"