Market Analysis: Intraday Reversal?

The S&P 500 has reversed off of its intra-day spike today, likely on the news the North Korean Fat Man is not deterred by the recent sanctions package. Given the rampant buy-the-dip environment, it is likely we close at new highs today; but these types of shallow, low-conviction stair-step rallies and sharp reversals off new highs are indicative of a market that is tiring.

SPX 200dma breadth is quite ugly.

And the McClellan Summation index has begun to roll over again.

IMO, the SPX’s first 5-10% correction is close at hand.


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