The period of consolidation/trading range appears to be on weaker footing than strength. In particular, weakness in market breadth and advance/decline volume (as manifested in the McClellan Oscillator and its Summation Index) are troubling. Continued underperformance of financials and topping out in commodities provide additional signals that this rally needs a breather or a correction.
We are refraining from adding longs, continuing to sell covered and uncovered calls, and shorting select sectors. Oil (USO) appears to be topping out.
Chart Pattern Indicator: What's the Reading?
3 weeks ago
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