Special Risk Capital Management LLC

Market at Top of Trading Range – Struggling September 23, 2017

Sept. 22, 2017 –  Really not much is happening in the world markets.  The NASDAQ Composite Index (below) shows us that we remain in broad trading trade that started in mid-July.  Those blue channel lines are nearly horizontal.

I note that conditions are generally positive, so I remain invested, but I also see that Volume Flow and the volume bars at the lower part of the chart are dropping.  There just doesn’t seem to be as much interest in adding to positions right now.  Technology has slowed, Developing Markets (Latin America & China) have also slowed their advances.  I’m still on the watch for an Up Thrust higher on weak volume to flush out the last of the buyers, but this is more likely a Consolidation pattern.

Some of the previously weak sectors like Energy and Healthcare have shown some rotation back into them.  The question is whether this is a market sector rotation (coming out of one sector and going into another) or just a general slowing down of activity / consolidation.  If this low volume continues without Index prices dropping it would indicate Consolidation.  And the market waits.

Not much exciting to review.  Have a good week.     ………  Tom  ………