Look Here Before Jumping in
Whether you follow indices or not, it's crucial to keep in mind of the intraday and day-to-day flows across equity sectors in the US. I warned in today's earlier IMT against shorting feverishly at the first sign of a 0.5% drop in indices and cited in today's video (below) my reluctance to short indices on Friday (despite the approaching Friday bell and usually negative virus implications for markets). Having said, it is peculiar that the usually aggressive technology sectors (Not NASDAQ) have yet to hit new records (SOX and XLK). Further, as US indices hit new highs for the day (as of 16:39 London/GMT), defensive sectors are in the lead (utilities and consumer staples). So keep an eye on SOX, XLK for that crucial component needed to maintain upward momentum and I'll keep an eye at their equivalent in the DAX. Below is the video for Premium members, where I note the 2 metrics Im watching before a possible short.