Stay Out. That’s the best I can do after today’s action. We had a few great looking setups with a leaders like MELI, LULU, and OPEN.
But then we had many of the indexes dropping through their 50 day moving averages. Are these stocks making moves ahead of the next leg up or are they gasping for one last breadth before tanking?
Taking a peek at breadth we can see a slow degradation in breadth over the past week with overall negative breadth for the past 6 days days creeping higher than the positive breadth. To add to the confusion the primary breadth indicator remains positive.
At this point, a few more days should provide clarity with a move to the downside or a bounce higher.