Last week caused some real damage to the bear case, and frankly at this point a strong Monday might be the coup de grace.
Starting with the NASDAQ Composite, it is approaching lifetime highs. I’ve placed a dashed line at very minor resistance, with the break to lifetime highs not far from there. The exceptional topping pattern has been utterly ruined.
The Dow 30 is neatly inside its ascending price channel. It would take a very strong impulse lower to crack this thing.
The NASDAQ 100 index isn’t in quite the ruinous state that the Composite is, since we’re at the midway mark of that diamond reversal top. But, honestly, we REALLY need to weaken immediately to give the bears any hope.
The bulls are in total control of the S&P 100.
The same can be said for the Russell small caps, which are just one mediocre day away from lifetime highs.
Probably the only index chart that can be considered plausibly bearish still is the semiconductor index, but I’ll just say it again, it needs to start falling IMMEDIATELY for the bears to have a chance.
As with its little brother the OEX, the S&P 500 is utterly in bullish hands (or hooves, I guess).
Lastly, the Dow Transports has retraced to a price gap, so it’s got a decent chance of falling from here.
As you’ve probably divined, I’m feeling pretty glum about bearish prospects right now. If this keeps up, I will probably just devote more of my attention to precious metals again, since that’s one asset class I feel strongly bullish again for the long haul.
