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Linda Raschke, founder at LBR Asset Management, highlights the potential for a 'Sell Short day' on Mr. Rus with an accompanying rate of change (ROC) divergence.
She observes that this scenario often occurs when larger capitalized stocks are being distributed while certain segments lag in rallying.
Raschke has recently identified shifting technical patterns in various markets. She noted a three bar triangle breakout pattern in copper during the Asia market open. In a separate observation, she drew attention to a wide range reversal sell pattern that signaled the potential for further market declines.