1/12/14 – WEDNESDAY

TQQQ finishes the day up for the fifth day in a row and overall breadth clicks down (see circled blue areas on the daily frame on the right). Seen that before (lots of times…) and it most often means a sell down next day. Took final profits on all my leveraged ETFs.

In addition the stocks on my nifty-fifty stock list also are not overall negative but they are on a rollover from a high of 48 on buys three days ago to 44 on buys two days ago to 41 on buys yesterday and finally down to 34 today. The overbought stocks in the list steadily rising during the rally also click down today.

Looks like we’re going to get a pullback into Friday, and it would be nice if it was three-days down to clean out the current, rampant, upside pressure. However, the recent up swing has momentum in it so don’t expect more than a one or two day pause and it may just be no more than a sideways slide.

And, by the way, the SPX — down less than a point but down — gave an outright price sell on its own.

(Click on chart for a larger view)