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Index Blues

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

On this day 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, sucks. 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.

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.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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