This is an abridged version of our Daily Report.
A week of warnings
Every day last week triggered a Hindenburg Omen or Titanic Syndrome technical warning signal.
While they are much-maligned and not immune to failures, similar clusters of these warning signs preceded consistent weakness across stocks and sectors and were good for volatility.
A not so leading indicator
The Dow Transports broke out to a new high, exceeding its highs from August and January. At the same time, the Dow Industrials are lagging, more than 2.5% and 150 days from its own high. This has not been a positive leading indicator for the Industrials, with more large declines than rallies in the months ahead.
After a tough day on Monday, the Invesco India fund, PIN, has the lowest Optimism Index out of the country ETFs we follow according to the Geo-Map.
Two weeks ago, we saw that there was a big jump in speculative options activity. That continued last week, as the Options Speculation Index declined only slightly, from 1.33 to 1.31.
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The post titled A Week Of Warnings As Transports Break Out was originally published as on SentimenTrader.com on 2018-09-11.
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