This chart caught my attention.
Great relative strength for the broader market in the face of deteriorating financial support. Historic lows on Goldman's daily relative strength index (RSI). Lower than even during the financial crisis in 2008. Looks primed for a bounce - but buyer beware. The last time it traded this weak on a relative strength basis was right before the bottom fell out of the market in the fall of 2008. A more equal comparison of market conditions (in that GS dislocated from trend) was last May when the SEC investigation broke. The market held up for a few days before it followed suit. What is troubling about today is how long Goldman, and for that part, the financials - have been trending away from the broader market.
And isn't there something about some kind of rapture this weekend?
Of course Goldman would know about it before the rest of us...
(Positions in UUP & TZA)
Disclaimer: This is not investment advice. Always do your own due diligence. Erik Swarts is not a registered investment advisor. Under no circumstances should any content from this website be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor.