The NYMO cycle is Down.
The recent up cycle left a lot to be desired.
It rallied to just above the zero line fell back and then barely ticked a higher high before crumbling.
This morning we find NYMO quite close to the "Turn Zone."
Arguably, a lot of stocks have been getting distributed since mid-June in spite of the index continuing to climb.
Perhaps we get a rotation ahead to rebalance and hold things up, or perhaps the stocks that propped up the index will fall down to join everyone else.
We shall see.
Big gap down today.
The move has closed one down gap, but a plethora remains below.
I would say we have a bit of an island top except everything is so gappy these days such a thing is hard to guage unless it occurs in the futures market.
I think I need to see more before drawing a conclusion about what we got here.
I am flat ES and short R2K.
I balked on prior long setups given the weak NYMO.
It saved me from a loss on R2K but I would still be long an SPX runner with a BE stop.
I do have an SPX short setup fermenting but not ripe yet...