Well, that’s that. February is over, and I’m surprised this sentiment meter isn’t reading 100.
After all, the past four months in a row have been a steel rod shoved directly up the collective ass of the bears. It’s been absolutely brutal. There’s no two ways about it. Here’s the monthly S&P 500 cash index.
At this point, I’d simply say “it’s all about the wedge.” Here we see the NASDAQ Composite which, as is the case with many indexes, got close to but did not exceed it lifetime high, and at the same time, is teetering at support where I’ve drawn those wedge lines.
That goes, word for word, for the NASDAQ 100.
One sector which is doing absolutely nothing even close to “teetering” is semiconductors which, thanks to the AI obsession, have become the most important sector in the history of homo sapiens. This has been steadfastly following its channel higher ever since the October bottom.
Yet I would still say: it’s all about the wedge! The major market index is reaching a key decision point: break to the upside or the downside? I mean, c’mon, fellas. The eraser budget for the boys in Gainesville is out of control.
One last thought I’ll leave with you: this is NOT what the Dow Utility Index looks like at major buying opportunities for equities as a whole.
j
