Pencil-Dick Post-Mortem

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Now that Jerome Hayden Powell has done his eight-times-a-year thing once more, let’s catch up on some important equity indexes. My conclusion is overall the same: he didn’t change a thing.

Look at the Dow Jones Composite. Today’s Powell love-fest, which included his typical donning of his kneepads for the billionaire class, did nothing but produce a red bar. More importantly, it has become a cliché at this point that the days following the FOMC Kabuki theatre are quite weak. Break that horizontal line, and pencil-dick gets a black eye.

slopechart COMP

AAPL, MSFT, and GOOGL all had oh-my-God earnings, but all it was good for was this lame spinning top:

slopechart NDX

The one that has me the most nervous is the Russell 2000. This sucker needs to weaken, and fast. We don’t want to see it go above that horizontal midline.

slopechart RUT

One of my favorite setups right now is energy (again). As long as the oil index doesn’t push above that price gap (see horizontal line), this is fine.

slopechart XOI

Let’s have one more look at the Dow Composite, this time with the %R and CCI indicators. Looks to be in a state of degradation to me.

slopechart COMP