Last week I told you risk for the markets was off the charts. Last week Google is down 1.5%, FB down marginally, Amazon down 2%, AAPL up marginally and NFLX down 5%. Biotech is down 2.9% as is housing. These are not big numbers, but when you look at some of these charts we are starting to see technical damage for the first time in a long time.
It was a fine intraday shorting opportunity on the YM. Like most days those of us keeping our nose to the grindstone work to eke out some points. Check this out, it doesn’t get much nicer than this. The pivot in question is 233 min (Fibonacci) high to high to 21987 and the 987 is the vibration (Fibonacci).
Right now, the FANG stocks are getting hit. The question is whether there will be follow through. But other sink holes in the market are developing. The Transports got smashed on Thursday and it was only three weeks ago they gave the Dow a Dow theory confirmation when both went to new highs. On Thursday and again Friday the Dow itself hit new all-time highs. You see the trannies going the other way so this is becoming the classic non-confirmation.