Thursday started off with everything zooming higher – – the Euro, the NQ, the ES, gold, silver – you name it. I've been carefully watching both of my trendlines on the ES chart below, and they acted as firm support, as I anticipated. If we can somehow manage to break these lines, the game is going to change very quickly. Until then, the bulls are still in control.
We have weakened over the past couple of weeks, however, and the Russell 2000 provides a nice example of this. Take a look at the trendline which the $RUT managed to exceed. I am going to zoom in to the highlighted area…….
…….and as you can see in this close-up, the trendline, which once broken had provided support for a few weeks, has resumed its role as resistance. Thursday's high on the $RUT perfectly tagged this trendline, affirming its importance.
And although the weakening is taking an annoyingly long while, the same situation is taking place with the miners. Here is the $HUI chart:
The most encouraging thing on the bearish side – – aside from the fact that we got a 20-point reversal on the ES in the morning – – is the clean formation of the topping pattern on the NASDAQ. Weakness from giants like AAPL and AMZN continues to erode this index. My target remains at about 2950.
