Shock absorbers are weak right now.
After choppy week, the big wave upward arrived Friday, but it wasn't enough to float the cumulative advance/decline line to make a higher high or keep the McClellan Summation Index from sinking.
Why this remains a concern for us.
I believe there is only one suitable way to use this ETN.
We'll need patience to see how this plays out, but so far new lows are growing despite the indexes hitting highs and breadth has had a streak of red.
I think VIX is going to stay sub-14 for the rest of the month, maybe the rest of the year.
The transports failed to make a higher high on Thursday, so there is a Dow Theory non-confirmation in place -- also we have three-straight days of red breadth and the McClellan Summation Index has stopped going up.
How can we explain the continued rise in equities in the face of a deterioration in fundamentals? Let's try.
After Thursday's shakeout and bearishness, people have started to border on giddy -- let's see what else changed over the weekend.
VIX and stochastic levels have implications for the current market.