Index Blues: 6 Charts Show Downlegs To Continue
Tim Knight | Mar 09, 2021 12:11AM ET
Yesterday—Monday, Mar. 8—when the Dow hit the highest point in human history while at the same time the NASDAQ hit “correction territory” since it is 10% off its own highs, let’s catch up with some big markets.
The Dow Composite, aided by the Industrials, tagged its upper trendline. The wedge says it all, though.
The NASDAQ has been leading the way down, having tagged its own wedge the exact same way, except weeks ago. I think we’re on track to hit one of those lower trendlines I’ve drawn.
Gold, of course, stinks. The miners may have a bounce, sure, but I think ultimately they are going to utterly crumble beneath that right triangle pattern.
One of the biggest chart events of the past few days have been the failure of the semiconductor index. This is tremendous!
The S&P 500 is starting to tiptoe away from its own wedge pattern. Short-term, I think a trip to that horizontal is in order.
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Lastly, my fondness for energy shorts is unbowed. I think the oil/gas index is one of the most precarious charts on the planet right now.
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