Leadership Lacking Coattails ~ The Risk Averse Alert

Thursday, March 22, 2012

Leadership Lacking Coattails

Technical divergences registering over the past month-and-a-half revealing some measure of increasing weakness underlying the market's advance since early-October 2011 now put the market in line for a hit tipping its trend lower. Still, while time avails every minute will be made to count. Indeed, as bad as today was, weak hands with eyes no doubt fixed on the exits did not make a mass exodus...


Apparently, when NYSE laggards were taken out this week (today and Tuesday), its leaders were relatively spared. Still, the air pockets created give a sense of what's ahead when the NYSE's leaders finally are taken out and shot. Failing to have coattails, it is only a matter of time before the market's ever-thinning leadership falls.

Although there appears intention to continue driving the NYSE's leaders higher (thus explaining today's tame $NYHL), today's setback could challenge this position, as the weight of the majority of issues apparently is overwhelming the weight behind leaders. Thus, the market's reaction might differ from earlier this month in the lead-up to yet another demonstration of NYSE leadership only the more lacking coattails.

For the time being the matter of making every minute count finds most likely in store a fourth and a fifth wave of five waves up from late-November 2011, then disaster. There is more than an outside shot, though, something nasty could spring forth and sink the market faster than Greece.

Fast Money
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