Both $SPY and $DIA broke below 10-week line, which I consider a clear picture of a long term support. On the other hand $QQQ are still having some cushion above the 10-week line, but we had many distribution days in the last couple of weeks, which means the big guys are raising money large off the table.
In addition to this, today I was checking my market leader's watchlist and it took me a lot of work to find leaders holding up, several are doing poor advances after breaking out like $FB. Others are being hammered and breaking below 10-week lines, like $DDD $RGR $WX.
Next week we have important earnings announcements coming out, in this uncertainty evironment I strongly suggest not to open any new positions until we have a clear new trend which if we take into account the market leaders past week action the most likely way is DOWN. But as we don't have a crystal ball we'll be waiting patiently on the sidelines. Always remember in this type of situations cash is the king.
Note as well the strong bull market we had since the begining of 2013, we never know but this could be the end of it, but I welcome this corrections because we could find some strong new leaders and fresh new bull runs is where the big bucks are made.
Trade them well this week.
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