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At the close yesterday we got 5 out of 7 possible index top spotter setup signals. Missing from a unanimous sweep was the DOW and YM (DOW futures).
At around 3:30 yesterday the market internals were set up for a hard sell-off, but the futures were goosed into the close and so even though we got several marginal index top spotter signals–there weren’t as many confirming spotters (134) in the Russell 3000 as there could have been otherwise.
The last time we had a major top spotter setup that confirmed was September 19, 2014…
http://bigpicturecommentary.com/?p=7154
…and it also had 5 of 7 index spotters but more internal confirmations (204) along with a large number of unusual volume detections (2,025).
Spotters don’t mean a thing unless they confirm with a subsequent close below the signal bar low–so we will need to keep a watch here and see if this confirms or invalidates.
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ES spotter signal was at 2117.75, with a confirmation line at 2107.25 on a subsequent close. If price breaks above 2117.75 by even one tick, then the signal is invalidated–but if we get a close under 2107.75, then maybe something more significant could be in store. Those are the two numbers to watch for today.
So, head’s up…
…my .02
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