I just wanted to write a quick technical observation. On Friday, the SPX seesawed in the wake of the Scottish Referendum news and triple witching and the index struggled to hold its upside breakout in the face of negative divergences:
On the other hand, the uptrend was violated on the SPX 15 minute chart:
As for the Russell 2000, there was no uptrend on the 60 minute chart:
For a different perspective, the uptrend remained intact on the SPX 15 minute point and figure chart:
I will write a longer note tomorrow about why the path of least resistance for equities is likely to be down.
Disclosure: Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
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