Swing High

Big drop in the markets today. In my halftime report I predicted that we would see spy chop sideways for the rest of the day and that is exactly what happened.

SPY broke down out of the high base formation it formed on the daily chart. The market internals corroborated the move lower. The next support area is 102 on the SPY. The other major indexes are also showing weakness. The Dow Jones Industrial Average (DIA) also broke down out of a high base today. The Nasdaq (QQQQ) showed relative strength today, but has been showing relative weakness over the past few weeks. The Russel 2000 index (RUT, IWM) has shown significant relative weakness to SPY lately. It did not make a high base formation when SPY did. In fact, RUT made an equal swing high on the daily chart. A double top will be confirmed if RUT can break below $580, which would be extremely bearish.

Thanks for being a part of Swing-High.com! Remember to always trade with a stop loss and manage your risk appropriately.

Happy Trading,
Jason

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