Major test pending for DIA of upper downward channel. Each leg down was followed by a .786 FIB retracement- the latest leg being no different. .50 Channel FIB acted as prior support and is a good first target for shorts. Just how much we overshot to the downside in DEC, we've likely now overshot to the upside. Stochastics started to diverge a week ago. Sitting at BRN (Big Round Number) / Psych Resistance of 25K.
SPX & QQQ both hovering at D1 200EMA. XLF & XRT failed to breakout of range. XLY & XLY brokeout with very weak strength.
Have to imagine we see profit-taking either into the weekend or next week. Feeling like this week is going to end with a sideways-drift, possible lower and folks are going to re-balance beginning in FEB.