
Question:
I wonder how strong the resistance of 417 is, since it had no problem getting thru the same resistance (on the same style chart) on the QQQ and most of the tech mega caps like AAPL AMZN MSFT and TSLA ?
Answer:
1. we need to see it to believe it
2. correlation: The QQQs has a bullish correlation to the market at the moment XLF has a bearish correlation thats why SPY is in the middle of the road.
if we see a pull back in the QQQs and a bounce in XLF and other sectors we might break SPY weekly because that means that sectors are rotating money, but if we see all major sectors pullback together, than we won’t see a break now because that means that money is leaving the market as appose to rotating.
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