Over the past week, the balance of power tilted ever-so-slightly toward the bears. Broadly speaking, the market has been range-bound for nearly half a year, and the levels of support and resistance have been clearly defined. The longer this takes, the more explosive the breakout or breakdown will be.
The NASDAQ Composite shows this range quite plainly in the tinted zone.
The Dow 30 Industrials has cracked its ten-month old trendline for the first time.
The NASDAQ 100 is, like the Composite, range-bound and roughly the same price level it was before Halloween.
Here is the S&P 100 which is about 90% done with what could, I say again could, be an important topping pattern. It isn’t complete yet, but that support level demands attention.
The Russell 2000 is at the cusp of a breakdown but, I’ll emphasize again, a prospective breakdown is not the same as a breakdown. Suffice it to say I’ll be watching this like a hawk.
The exact same can be said for the semiconductor index.
Our friends down in Gainesville have their own perspective of the market. From their perspective, the top is already in, and we’re all just waiting for a cut below the lower horizontal line for wave 3 to kick into gear. This applies to the S&P 500……..
………as well as the NASDAQ 100:
Here’s hoping we can make more progress next week!
