Wide and Loose Range

General market indices have been trading in a wide and loose range for the past 6 weeks.  The S&P is currently on week 5 without establishing a new closing low and has had a weekly close in the 10% pullback zone multiple times without breaking lower.

SPY

IWM has been hovering in the range of a 15% pullback and undercut it's previous low pivot point.  20% correction in small caps may be on the horizon.  

IWM

The COMPQ was the first to undercut a key pivot low 2 weeks back and continues to hover in the range of 15%.  This is a key pivot to observe as an undercut puts the index in 20% correction territory.

COMPQ

NYSE continues to hover between 10-15% but is close to undercutting a pivot low from 6 weeks back.

NYSE

One thing I've been keeping in mind is the oft repeated quip, "When the cops raid the brothel, everyone gets arrested, even the piano player."  Additionally there is the belief passed through the O'Neil books and practitioners that when the markets correct, leading stocks for the next up leg decouple.  There are a number of stocks that have bucked the general market direction and continue to hold well through the volatility suggesting to me that until these break down I'll continue to be optimistic of upside continuation when things settle.

TTD

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