On the surface, the market still appears it wants to go higher. Underneath it, there are signs that this uptrend could be ending. One sign is the recent market leaders are showing some exhaustion price action. The semiconductor sector ETF, SMH made an intraday reversal today. The energy sector ETF, XLE wicked up and ended with an inverted hammer (shooting star) candle. The SP500 ETF, SPY also is beginning to show sign of fatigue. The QQQQ and the XLK ended the day with long wicked inverted hammer. If the market was not in an extended state, these inverted hammers or shooting stars will not be a concern. But this market has been rising without a pause or a correction, these price actions could be a sign that most of the longs are in the market and a reversal could occur shortly.
Here are the charts. The trend still look good, but the price action is a bit disturbing. The market is presenting a murky picture. Until the picture is cleared up, I am taking a step toward the sideline. I would rather err on the side of missing a big up move than being trapped in a sharp reversal.
SP500:
DJIA:
DJT:
Nasdaq 100:
QQQQ:
SPY:
XLK (Tech ETF):
SMH (Semiconductor ETF):
XLE (Energy ETF):
