Blake Young just flagged something troubling in today’s market data. Nine of 11 sectors closed higher, yet more money left equities than went in.
The numbers tell the story. Advancing stocks pulled in $1.4 billion. Declining stocks saw $1.8 billion walk out the door.
That $400 million gap went straight to cash. Bonds didn’t catch it. Gold barely moved. The dollar strengthened while equities churned.
Technology and healthcare dragged the index despite broad participation elsewhere. At one point, 75 stocks in the S&P 100 were up while only 25 were down. The advance-decline ratio hit 3-to-1 positive.
None of it mattered. Capital weight trumped breadth.
Blake sees this as confirmation of the potential top the market put in yesterday. The ES traded into overbought territory on both yearly and monthly monkey bars. It pushed to record highs, failed to hold, and reversed back to fair value.
In tonight’s video, Blake breaks down:
- Specific entry level at 6862 to go short if the market closes below
- Energy stocks showing breakout patterns with Occidental targeting a 10% move higher
- Consumer staples trades in Archer Daniels, Colgate, and Cigna with 3-5% upside targets
- Why 103 million working-age Americans sitting outside the labor force matters
Tomorrow’s non-farm payroll report adds uncertainty.
JOLTS data already showed job openings down to 7.15 million from a peak near 12 million. That’s barely enough to cover the 7.8 million receiving unemployment.
