Small caps are pacing the way higher. The 23.6% Fibonacci extension was reached and exceeded yesterday.The chart below highlights the January effect with small caps far outperforming large cap broader markets in the month of January.
Last week, we said we were looking for a small correction to SPX 1300. A good place to add to long positions. Now, we need to see follow through to our target at 1344. Also note the golden cross of the 50/200 SMAs.Divergence between light crude and the SPX is a bit of a red flag. A stronger market due to improving economy should lead to higher demand for oil. Since the beginning of January oil is in decline. What's up with that?
2 comments:
OT - Doubled position in TBT long - and still short TMF. The chart was hinting at a bottom - - will see.
Nice job!
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