Wednesday, March 9, 2011

The Four Horsemen

Last summer, when it looked like the market was rolling over in the wake of the flash crash, I was watching the Four Horsemen of the Market - XLK, XLF, XHB and RTH - tech, financials, homies and retail. If they broke down the market would go with them.

As you know, nothing broke down and we are 30% higher. Today's Barron's Online column was about the market's pattern and it featured two of the four horsemen - retail and tech. Here are the other two:

Still in a rising channel but on-balance volume is not keeping up.

Holding support but on-balance volume is worse.

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