In this latest "off May's bottom rally" Financial Sector was definitely a "dog" – underperforming other hard hit sectors. Should it be looked at as a potential long candidate? Lets take a look at JPM.
Daily chart is at day 5 of ongoing Sell Setup – in insulation there seems to be more upside left. But this "first impression" might be deceiving, beside – bearishly biased fellow traders would say that Chase is not up to the races.
And – here is weekly chart of SPY – as you can see TDSequential Countdown 13 completed last week – short? But wait – immediately – Setup Sell started
Am I making myself abundantly clear? Not? Right – what kind of clarity would you expect after 4 doji days in a row? And totally mediocre volume?
That might look like "bearish engulfing" on daily – but I really stopped paying any attention to candles long ago, unless those are hammers/shooting stars on high volume.
What I am trying to convey here is that market is most likely in the sideways mode till at least after Independence Day and unless you are scalping – there is no clear edge and patience is a virtue (I can say it again…to myself)…except carefully scrolling over SHIPPERS' charts and finding long candidates?
