Time for some middle-of-the-night ETF chart musings. The Dow 30 is close – – so, so close – – to breaking its uptrend. Even one modestly weak day would do the trick.
South Korea’s top is massive. You’ve already heard how investment advisors are getting stabbed in the face since their followers are getting toasted by their formerly hot market. Expect more.
China is at or at least close to a crucial reversal point. I am already short this as well as BIDU and BABA.
Precious metals, as I’ve been saying, are just going to keep grinding lower. So, too, will the miners keep falling.
The small caps have already broken the uptrend. It will be much easier for this to start falling now.
As weak as tech stocks have been, the NASDAQ ETF is a tougher read. It is far from being complete with its own topping pattern.
However, the semiconductors might just drag the NASDAQ down. This is a powerful diamond pattern, and the innate weakness of SMH on Wednesday is indicative, I think, of what we’re going to see transpire in the future.
The real risk is the S&P 500. As I’ve been saying for days, a push above its multi-month range would provoke the bulls into even more buying.
The market is severely bifurcated. This will resolve itself soon.
