Fortress Dow Under Siege?

Cracks and fissures have been appearing in the momentum stocks for the last couple of weeks. I have noted the deceleration, specifically the head-and-shoulders top in Tesla (TSLA) last month and a potential reversion of the European iShares funds shortly after that. This week, weakness looks imminent in China gambling names.

Wednesday, market diversions relative to the DJIA were interesting, particularly the transports, which suggests the smart money is taking shelter within the walls of the Dow. It may not be a safe refuge over the intermediate term. The Russell 2000 formed an evening-star candle pattern on its weekly chart and looks, at a minimum, to retest the lower end of its rising channel. The S&P 500 is testing the upper end of the rising channel pattern it broke above last month, and it appears vulnerable to a move that takes it back into those trading borders....160 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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