Many of the weekly divergences we covered in the May 25 video were confirmed today with strong volume moves. The Treasury bond ETF (TLT) was down 2.0% on big volume - typical day 9.1M shares - today 20.8M. TLT may go on to make one more new high, but it may prove to be short-lived. Other ETFs discussed in the video that moved in line with the divergences today: FXF, FCG, EWG, DJP, TBT, SLV, EWI, UDN, EWP, and UUP. The May 25 video is presented below as a reference.
We will continue to compare alternatives head-to-head this evening looking for the best risk-reward opportunities. We have to be open to numerous outcomes, including lower lows, but the odds of a sustainable rally have increased significantly over the last two trading sessions. Knowing what we know today, we will look to add to our exposure on any weakness or if nearby resistance levels are exceeded in a bullish manner.
Many daily DeMark counts tell us to be open to new lows, but today’s action was indicative of a rally attempt. We have seen enough already to warrant some accumulation of shares; a process we started today.