Looking at the fresh index charts it seems to me the trendlines are saying, in many cases, “I dare you to break me.” For example, on the NASDAQ Composite, prices have been assiduously clinging to the trendline, barely hanging on for dear life.
The Dow 30, likewise, is pulling the same stunt: for the past eight trading days (that is, those days following the trendline failure of September 24th), the price bars have been clinging to the trendline like a scared baby monkey to its mother.
Not surprisingly, the same setup can be found with the S&P 100:
A different representation is offered by the Russell 2000 small caps. In this case, the index is at never-before-seen lifetime highs, and it isn’t anywhere close to breaking its sharply-ascending trendline of April 7th.
Of course, the madness with AMD (which is the topic of many /wallstreetbets posts of the lucky ducks who had short-dated calls) flowed into the semiconductor index today, and here, too, the price is not close to breaking the uptrend. Early on Monday I shorted the SMH, mostly because I was completely irked at what happened with AMD:
Back to “I dare you,” however, the S&P 500 is skirting precisely below the failed trendline.
Over in la-la land, the gold sector index is way, way above its former incarceration wedge. I shorted XME late on Monday as I try, once again, to take advantage of any mining weakness.
Were it not for AMD, Monday would have actually been a perfectly good for me, but the stock decided to poop directly into my punch bowl. Ah, well. Now we can watch it wither away to where I shorted it in the first place!
