Back on August 27th, I posted my thoughts that the market internals were likely making a bottom and that traders therefore should be looking to take advantage of the upcoming bounce in the market. As has been the case of the market the past several years, the bounce has lasted longer and gone further than I would have thought. I was looking at it ending around the September monthly OpEx date.
Well, the measure of market internals that I rely on is the McClellan Summation Index …
McClellan Summation Index – Daily Chart
As you can see on the above chart, the Summation Index painted its first red candle since this rally started. That is not to say that we are starting to begin a new trend lower here on the S&P 500 Index, but it does suggest that the push higher has begun to weaken. Look at that move …. this market is amazing.
Cheers … Leaf_West