I am torn...

I am torn between the bullish and bearish view here. I was of the expectation that we are headed to new highs in the ST term. I can no longer envision such a scenario with confidence, given what the internals are saying at this point.

The NSYE summation index is now making a trip towards the zero line. The Nasdaq summation index has formed a fishhook and was rejected from the zero line, which means we are probably headed for some sort of climactic selling. I don't have any downside targets yet. The break of ES 1510 pivot means we retest the ES 1490-92 area in the VST term. Also the 5% and 10% components of the NYSE and Nasdaq MCOs are now below the zero line, confirming the IT downtrend.

The lack of selling pressure in the Nasdaq is quite disturbing here. Given that it's internals are worse than NYSE, it still holding better than the SPX. I don't know whether to intrepret this is bullish or bearish. Internals are clearly bearish, but the price action is bullish.

As i said i am torn between the bull and bear camp. I will try a short trade on NQ today (went short NQ at 1945). Even if we trade above 1958.25 for a tick, i will be out and will switch back to the bull camp. I have been a good fade the last one week. Trade at your own risk.