Another Reversal Before Takeoff

A recurring theme which we have seen for the broad market has been the last-minute reticence of buyers to fully capitalize on having shorts on the ropes. Without question, buyers have presented themselves down below, just when it appears that support would be lost and a deeper market pullback would be inevitable. However, the upper end of the broad market range since July has been a different story, with concerns over The Fed, macro, election, crude, DB, or all of the above, proving too much to sustain that meaningful new leg higher, at least for now. And thus the grinding, rangebound sideways action, albeit right near all-time highs. 

This morning, we are seeing a vacation of that scenario, with the S&P 500 Index flipping back red as I write this after some initial strength off a DB rally overseas, not to mention crude oil green, too. 

But crude is facing after inventory, and DB is well off its highs, too. So, I am looking to see if buyers can quickly regroup here. At some point, bulls may become so frustrated at the lack of upside follow-through that they may fail to show up at the low end of the range, a legitimate concern indeed to monitor. 

Speaking of reversals, NKE flipped back to red after initial earnings spike last evening. On the updated daily chart, below, a move below $54 likely serves as a short trigger for a new leg down, especially if the broad market fails to regain its footing.