We may see a mirror image of the upside momentum which was grinding to uspide even if markets were showing overbought and negative divergences for a few months. Most of traders or investors would be waiting to see whether markets will regain the loss territory, e.g. SPX 1047, and will decide whether to take profit before the recent gain evaporates. Since we didn't have any meaningful correction for several months since the March low, many are still sitting on big profit; so, hopefully, we will see more traders and investors are taking profit going into the EOY.
Reviewing major market charts, as noted above, majority of major markets and indexes closed below the March Rising Wedge, but it seems that many are still in denial. It is amazing that not many are concerned with the Sept-Oct volatility even after 50%-300%+ gain.
$COMPX 2059.61 -56.48 -2.67% 2,763,230
$INDU 9762.69 -119.48 -1.21% 1,675,820
$INX 1042.63 -20.78 -1.95%
As noted below per CNBC market summary, will see how markets will react to the Economic data, but, hopefully, bears will have a bit of luck after a few day selling as daily and weekly price actions are very overbought. I think that many have forgotten the phrase, "Don't catch falling knife."
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