Market summary

Spooky Halloween October scared markets today, with lots of leaders out with their earnings we failed to sustain a rally and had a huge reversal day today. Things were looking pretty decent but around 215 CST markets started selling and made a major bearish reversal day across the board.
Sector wise transports/semis took the brunt while commodities rose.
Its early but I sense we may be setting a top in intermediate time frame here and bearish divergences are plenty.
Some of the red flags are

1. Russell not confirming the highs.
2. IYR, XLF not confirming the highs, (XLF may have an Island top)
3. Advance decline line not confirming the highs.
4. New high new low not confirming.
5. MACD has a bearish divergence.
6. QQQQ closed below the breakout level( hence could be false breakout).
   

Sensing the 215 fall I jumped on and shorted the laggards such as IYR, IWM who didn't make new highs. Sorry for not tweeting as action was too fast into close. Tomorrow I will try to short anyy rally in broader indexes with stop above todays high on closing basis for a swing trade.

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