Early Market Cheer Failed To Hold Because Of Decline In Industrial Production

Bulls got some early cheer from homebuilders but that quickly faded with a (ahem) worse than expected decline in industrial production.

Bulls need a catalyst and a stronger flow of funds to markets. Now it seems many are either just bored with conditions or lack motivation born by an inflow of fresh funds.

Volume remains as light as a slow day in mid-August. Breadth was negative and we’re now short-term oversold while long-term overbought.

The Summation Index is turning over now in a more pronounced way than previously.

As for Transports, the following chart should give you the proper sense of things via the American Trucking Association.

I’m impressed by the turnover of the Summation Index. Perhaps we’re due for something more than a correction. The data has yet to support bullish sentiments. After a move like we’ve had we’re in a “prove it” environment.

There are plenty of charts to chew on and I’ll leave it there. After all, it’s only Tuesday.

Let’s see what happens.

Disclaimer: Among other issues the ETF Digest maintains positions in: MDY, QQQQ, DBC, DBA, USL, DBB, XLE, EFA, EEM, EWA, EWZ, EIS and FXI.

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