The markets have been choppy for several weeks and this has made it difficult for traders and investors to figure out the market’s next move. But the NYSE Composite Index (NYA) may be a market ‘tell’… today or in the days ahead.
While the NYSE Composite Index has made new highs, the other major indices (Dow Jones and S&P 500) have not. This is a divergence to keep an eye on. Taking this one step further and looking at elliott wave counts shows that a pullback may indeed be in order. If the correction in October of last year was a fourth wave, then the requirements for a diagonal ending pattern have now been met. While this isn’t a certainty that the top is in, the chart below suggests that it may be very close.
NYSE Composite Index (NYA) Chart
Keep an eye on how the NYSE fares over the coming weeks. Have a great weekend.
Follow Tom & Kurt on Twitter: @TradingOnMark
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.