Everywhere is weakness building and technical divergences abound. So, what is up with today's burst out of the gate carrying major indexes to new high ground since late-June bottom?
Following Friday's "don't worry, be happy," consolidation-like trading, the market's lift higher at the open really was no surprise. Yet the extreme to which relative strength coincidentally reached is curious at a glance.
Now, given Friday's "pass" revealing no selling urgency (at all) the buy-side imbalance at today's start probably stands as further manifestation of this. Indeed, selling restraint lasted for all of fifteen minutes before a decidedly weak tone took hold for the remainder of the day. Despite closing in the green today's dominating weakness really stands out and suggests further weakness could be in store.
Yet could today have marked the end of wave c (consisting of five waves [up] from late-August)? This hardly seems likely given today's strength at the open. So, expect levitation to continue a few days more.
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