On a scale of 1-10 today's "follow-through" was a zero ... a no-show. Instead, it was "get me out of here, I am even on the year." Top appears at hand.
Big volume on an outside day at a level rivaling the best over the past six months? Some large interest evidently finds this an opportune moment to trim its exposure. There's nothing bullish about this.
Which is not to say top already is in. It probably is not. However, it is near.
Seems to me that, if fundamental conditions affecting equities were improving, then the relative strength of the reduction in volatility likewise would be improving. Instead, relative strength is deteriorating. This stands out presently because the S&P 500 has rallied like a champion. It's a subtle thing, but technically speaking it's telling.
Maybe those pricing risk and those heading for the exits today are one and the same?
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