5/19/2014 5:48:38 AM
Good morning traders,
As the chop continues on the right shoulder, each week that the pattern continues to play out, leaves the market vulnerable. Seasonally speaking:
And on the divergence, let's look at the NYSE:
and the Nasdaq:
Another concern on the Nasdaq:
and finally, the barometer:
This set up is bearish, which is why we remain in Sell Mode, looking for the markets to weaken. That being said, the trend from the April 15th low remain up - as the QQQ builds a potential right shoulder, and this right shoulder could take a while to develop. Sometimes the market enters a hurry up and wait mode as us traders want to see a move, and want to trade it, but the market can be an exercise in patience as we wait to see any action at all...