Who’s In, Who’s Out

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The excitement from yesterday morning’s all-too-brief plunge is ancient history now. Let’s take a look at some important cash indexes.

First up is the Dow Jones Composite, which is still daintily dancing within its wedge pattern. We are getting awfully close to some kind of resolution here, because the apex of the triangle is rapidly approaching.

In spite of yesterday’s hammering, plenty of indexes managed to end the day unscathed. One example is the semiconductor index, which continues to be within the confines of its ascending channel.

The S&P broke its trendline yesterday – – just barely!! – – but it’s still worth noting. Broadly speaking, however, prices can still be considered to be safely hemmed-in by the wedge pattern.

One of the very few indexes that has had an honest-to-God failure is the Dow Utilities, and naturally this is because interest rates have been soaring for months now. This capital-intensive industry relies on cheap interest rates, and those are in the rear view mirror.

Another wedge pattern that is getting terribly close to some kind of resolution is the Major Market Index, which has exceptionally clean trendlines.

Lastly there is the oil & gas index. Energy has been my nemesis (and TNRev’s champion) lately. Oil prices have been extraordinarily strong, and energy companies have finally started enjoying the fruits of those higher commodity prices. The next meaningful resistance level is the horizontal line I’ve provided below. As a reminder, clicking on any of these charts provides a much larger version.