Vol continues to suggest the market is in a sedated state and isn't focusing on potential risks. Can this elevated level of sedation continue, sure, but who knows how it plays out.
Dips this low have led to meaningful corrections in the past, including at last month's peak. The more sedation, the greater the potential pullback when a new market risk arises.
A few charts of interest....
The S&P transports ETF staged a key breakout last week. Now they've pulled back in to support while erasing most of last week's gains. This is something to eye the rest of the week.
Twitter staged the monster breakout today. It's going to take a lot to wreck this move.
Moving to the daily chart, we see it's pretty stretched over the upper bollinger band as the BB curls up. Maybe it needs to back and fill, but again, it'll take a lot of selling to wreck this action. Keep in mind the resistance zone from October. It'll come into play at some point.
Moving over to Linkedin we see it finding resistance at the gap zone. I don't see why we'd own it on any time frame at the moment.
Thanks for reading!
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