Crude finally rolled over dropping from $80 to $75. XLF has already retraced 38.2% of its last leg up, bounced up 50% and is turning lower heading towads $12. It will be interesting to watch this and RUT as they were the first to show weakness. **If** the rally itself is over, they will be the first to show it.
In ES_F, MACD has been weakening with each move on the Daily and the MACD negative Histogram increasing in strength which in my mind, says we’re losing steam and the downside pressure is gaining momentum as we near the 50% retracement of the ’07 high. Additionally, if you caught the video [left] from slopeofhope, he made an excellend point. Previously, the lows of a new swing high used prior swing highs as support but in this last trend, each swing high had lows which penetrated he prior highs on an increasing basis. A good catch by Tim Knight. I continue to sell my longs as I can and short ES and other tickers at upper resistance levels. Doesn’t mean we can’t hit $1120 but in forming a top, I think we’ll continue to chop around until the Bulls give in, take their marbles and go home.