Quite a day we had, wasn’t it? It was looking pretty ugly out there for a while: BDI and I were engaging in our traditional woe-is-me email exchange, which normally marks an important reversal point in the trading day. What I’m watching with great interest is whether or not the 50-day EMA crosses beneath the 100-day EMA, which hasn’t happened in many years. The last time it happened, in a high school girl teasing kind of manner, was in November of 2012 (marked with arrow). The 50 skirted right on top of the 100 until a furious and vicious rally commenced afterward.
The other interesting sideshow is how the small caps are utterly partly ways with the mainstream media’s darling, the Dow 30. The Russell was weak all day, while the Dow – amazingly – was at its highest levels in the history of the human race. Incredible. Just incredible.
That market, as a whole, really hasn’t done much of anything for most of this year, and it would be nice if a theme actually took hold and stuck (preferably a bearish one). We’re kind of winding down the earnings season at this point, so it’s really up to Putin to throw a molotov cocktail into the market and make things lively again.
