Index Mega-Review

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The year 2020 has been insane in so many respects. In the stock market, we went from the quickest, most brutal beatdown in Q1 to the swiftest, fakest, most risible explosion in equity prices in Q2. No one knows what Q3 holds, but I can guarantee you that it will not be boring.

Below are seven major index markets. I’ve put some remarks in the caption of each.

The Dow Jones Composite has two key bearish elements going on: the island reversal pattern (circled), which is quite rare, as well as a broken intermediate term trendline.
The NASDAQ Composite has been incredibly strong. It has some damage to its intermediate trendline, yes, but it is nonetheless at its highest point in human history.
The Dow 30 Industrials, unsurprisingly, has very much the same pattern as the more comprehensive Dow Composite.
The NASDAQ 100 is perhaps the most interesting chart of the whole bunch: although it is at a lifetime high, it is mashed right up against a resistance trendline that hasn’t ever been broken.
The S&P 100 had a big price gap (blue horizontal) which has served well as resistance.
The S&P 500 is well below its intermediate uptrend and well as a similar horizontal.
Finally, the Russell 2000 has a very complex pattern. Should it break that ascending intermediate term trendline, all holy hell should break loose.