Let’s look at seven key index charts before we head into CPI week.
We begin with the NASDAQ 100, which is approaching a VERY important channel midline. That dashed line goes back a full 15 years (!) and, if broken, signals more wind in the bearish sails.
The S&P 100 has its next important support at the Election Gap (dashed green line).
The Russell 2000 has been quite obedient to its Fibonacci lines, and that’s a crucial level here as well. Break it, and it opens up the entire range beneath.
The semiconductor index did a total fake-out. It broken above its symmetric triangle (thanks to the unhinged rantings of Jen Hsun Huang at CES) and now is within the triangle again. Shrug!
The Dow 30 has busted well below the election gap, affirming that the new administration isn’t going to achieve dick, and I’ve drawn a horizontal line representing the measured move down.
Likewise, the S&P 500 is in a gorgeous rounded top pattern. Here, too, I have provided a measured move lower.
Lastly, the oil producers index created a shooting star formation on Friday, and I believe this will be reliably lower for months to come.
Or, of course, if you’re Zerohedge, you can consider every little dip in the market to just throw more cash into it, because permabulls are gonna permabull.
