Capital Essence’s “ETFs Trading Map” for September 21, 2009: “…Major Sector ETFs: over the past couple of days, most the major sector ETFs have consistently been trading to new highs for the year on a seemingly daily basis. As a result, Financials (XLF), Industrials (XLI), and Materials (XLB) are currently at their most overbought levels. While these levels do not necessarily mean a decline is imminent, they do indicate that …” Subscribers, please login to read more.

after a good four days run, the bulls are running out of gas as the market slam into key resistance levels. In fact, Wednesday’s upside breakout had setup a non-confirmation (or negative divergence) price-volume sell pattern on the NASDAQ. However, until or unless Money Flow measure turns negative, it’d be too early to pull that short-sell trigger

經過連續4天強勁上漲之後，市場已經逼近關鍵阻力位，多頭已成窮弩之末。事實上，納指週三的向上突破走勢已經形成了一個“未確認的”(或負面背離的)價量賣出形態。不過，在資金流向指標轉為負值之前，不宜過早進行賣空。

This is Capital Essence’s CEM News - Market Outlook (the technical analysis of financial markets) for September 10, 2009: “…looking at the one-year daily chart of XLI, we can see that the sector is now extremely overbought following recent advance. Usually, this spells danger. Money Flow measure however, continues to support the bullish case. So, over the next couple of days, we could have the sector drifting in either direction with a bias to the upside…” Subscribers, please login to read the rest.

After trying unsuccessfully to move above the important sentiment 900 level in early trading, the broad market index rolled over and is currently sitting right at the bottom of its two-month trading range, near 880. Given that support tends to get weaker every time it’s tested, the bulls need to push prices higher soon or we could face a significant decline over the next couple of days.