Here are today's scores:
We are still at really high levels, but coming down a bit. We have not had the sharp selloff that would signal a top, so I think the market may try for at least one more push higher. That may have occurred today, as the market failed to reach a new high and sold off a majority of the gains into the close.
Above is a depiction of small caps (the Russell 2000) vs the other major averages (DJIA, S&P, NASDAQ) over the last 4 trading days. Last night I wrote about small caps leading the large caps lower before the DJIA starts to turn over. We can see it happening.
BLACK GOLD! (OIL)
Back in August I was bored one day and decided to build a comparison of Oil prices vs the DJIA. I was looking for some kind of correlation. I picked up on a couple things. The most useful info for you right now is that since 2009, oil prices have collapsed in September. Going long the second half of September would have met with nice gains. The charts below show what I'm talking about nicely.
Once again we are seeing Oil collapse in the second half of the month. I'm not recommending it, necessarily, but I'm considering buying an oil ETF in the near future.
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GOOD LUCK TOMORROW!