Strange Brew!

This morning started with a strange sucking noise as the markets lured the bullish sheep into its trap before the bottom gives way and they all get the shaft. Isn’t that how tops are made? When everyone rushes in before they think the market takes off without them?

New 52-week highs blasted thru and passed Friday’s highs. But with so much power in that thrust, how come the markets didn’t do much at all? All the indexes were in the red except for the Dow…and that was only because of CAT. Advance/decline lines were negative as was the A/D volume. Strange brew! Or should we just say divergence big time!

And what a change of character this afternoon when the dollar broke down AND the markets followed suit. It’s been a long time since that has happened. Usually dollar down equals markets up and vice versa. Another divergence?

This is a pretty scary market and it just may be time for a downside move…a correction…or maybe something a bit more sinister? Oh, and one more thing…a Monday that was finally to the downside.    Signs That Could Mark A Top

News will pickup for the rest of the week as Tuesday will bring Consumer Confidence and Home Price Index. The FOMC begins a meeting Tuesday and a rate decision will be announced on Wednesday. What do you think….maybe a rate increase in the works? At the least traders will be looking for a change in the language. Oh boy, the last week of April promises to be fun!