With just hours until election day, let’s look at five ETFs which seem to suggest lower equity prices ahead. The first one is the Dow 30 “diamonds”, which has completed a top (in pink).
Here is Brazil, which bounced higher today on the heels of a big tumble Friday, but is still beautifully positioned to complete a massive head & shoulders top.
The tech-heavy NASDAQ ETF has broken an important trendline and has created a price gap (dashed line) which represents very important resistance.
On a more specific scale, the semiconductor ETF has likewise created a new gap (dashed red line) and has little in the way of support between present price levels and that horizontal green line.
Lastly, the S&P 500 ETF gapped down Friday below its now-broken support line. It is precariously perched on a massively-important midline of a channel that spans a full fifteen years. Break it, and we can expect selling to really kick in.
