Markets Mixed After Weekend, Here’s What We’re Watching

As markets open mixed after the weekend we have something for both the bulls and bears to hang their hat on this morning. The $IWM , small cap index which is often looked at as the gauge for risk appetite continues to defy gravity and shrug off all signs of being overbought.

Meanwhile the $QQQ is threatening to break below this mini 3 day range cluster of lows going back to Wednesday of last week. The QQQs haven’t been able to cleanly participate on the upside like it’s $SPY and $IWM counterparts so a break and close below 105 today could be the first signs of cracking and under-performance ahead.

One final metric members and I are watching today for clues is the McClellan Oscillator ($NYMO) intraday as breadth once again stubbornly remains positive and favors the bulls as advancing issues outpace those declining. Keep an eye on that ratio to see if it can go negative today which might start to tip the odds in the bears favor heading into the close.