Market Doubt:

Tuesday often known for its “turnarounds”, made a move in the wrong direction, if you are bullish. Some clues to today’s action may have been the softness in the small and mid-caps Monday which have been stalwarts recently. Those groups followed through lower Tuesday. The IWM was hit directly as the financials, the largest sector weighting in the Russell 2000 at almost 17%, were torpedoed. The chart below of the Nasdaq shows it completed a bearish evening star pattern Tuesday, and AAPL was some foreshadowing to that with its bearish gravestone doji to start the week Monday. On days like today, when weakness was so pervasive every major S&P sector fell by at least 1%, I always like to scour what was acting well on a soft tape as that will often be a tell. Maybe not tomorrow but it usually reveals itself in fine PRICE action in the near future. PINS is a name I will keep a close eye on as it was higher nicely the last 2 days but faded late along with the market. I think the action this week is the start of a candle on a cup base.

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