It is early in the day on Friday, July 11, 2014.
Will the broad averages succumb to selling?
End of day:
So it was a big down day for Deckers on heavy volume, although it appeared that the heavy selling was bought as the price held steady and sideways on the heavy volume. More buying on the dips. I guess the question is: "Who is buying on the dips?". If mom and pop are buying the dips I wouldn't put much faith in their staying power or their continued buying. And what big fund/hedge fund would be buying on weakness in retail after five years of low interest rates and with rising rates sure to come. (Someday. ;) )
I can go either way as far as the averages are concerned. But this week seems like one of those warning signs that at this stage of the bull market are roundly pooh-poohed. The odd thing is that energy is weak and gold is strong this week. And the dollar held up well.
I am cautious about continued summertime advances in the broader averages. I think the DECK index is portending some more losses in the DIA. It just seems that something is up. The problems with the bank in Portugal remind me of the problems that happened in early '07 I think it was. A day or two of weakness and then forgotten for awhile. In retrospect it is always that way. A top is a process. We may be at the right ear of a major Head & Shoulders top right now.
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