This is Not a Healthy Market

The market is anything but bullish right now. While we are still up significantly year-to-date, and are only down 5% from the year high, but we have been seeing clean distribution in the market for a while now. And with earnings coming in weak and the possibly of a recession in the horizon, being long has not been the trade since the start of earnings season.

And its clear the market isn’t healthy yet. There has been no bullish pattern. The RSI has not shown any bullish divergences and the ATR has been moving up, which is never a good sign. The volume on the downside has also been heavier as of late.

The only bullish thing going for the market now is that is still above the 200 day and the fact that we’re now too far off the highs. But that’s no reason to buy. Best to wait for better conditions now.

$SPY Daily 

 

Tags: $SPY $SPX $DJIA

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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