Market Sentiment Analysis - Week of June 21
Coming into this week we knew there would be a lot of volatility in the market with the Fed and quadruple witching day. With the S&P and DOW showing negative divergence with RSI and the breadth we knew that this last all time high was made on both lack of volume and participation. Everything was set for a rug pull. What was interesting was that when the FED came out with bearish statements, the initial reaction was that financial stocks would do well with the rate hikes being earlier than anticipated. However, from experience I know the initial reaction is often the wrong one after Fed days. Financials fell off the cliff on Thursday and Friday. Along with value and cyclical stocks.