@ZorTrades posted a chart just now regarding the Dow Jones Industrial Average being up five days in a row. He noted the Dow was running into fairly well-established resistance. As you can see below on the daily timeframe stretched, that is certainly the case no matter how you look at it.
With this in mind, the mega caps are likely to pause a bit here. The issue then becomes whether capital keeps flowing into small caps and some of the higher beta areas of the market as the stodgy Dow stocks likely come to terms with a major level, or if instead the whole market faces resistance along with the leading Dow.
Check out @ZorTrades stream for more analysis on this and other market points.
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Chess, Nice analysis. We’re also right back at the underside of a broken trendline connecting the October 2011 and June 2012 lows of the DJ-30. The SPX and RUT-X are already above that trendline though.
COMPQX is testing the neckline of its inverse H&S pattern you’ve been pointing out and has some room to catch up. The trannies and small caps are looking pretty good though.
Tom
I’ll bet the Good Senator wishes he had that rope and anchor that drapes around Sean ‘Puff~me~Daddy’ Combs neck.
😉
oh wait..
maybe that’s Wesley, ‘Tax Evader’, Snipes..
that’s even better yet..haha