Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Index Omnibus

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

With the giant reversal taking place today, let’s take a fresh look at some important indexes, in alphabetical order.

First is the $COMP, the Dow Jones Composite. This cracked through its trendline on Friday, but it has sprung right back above it. We’ll see if the damage done last week actually signals anything, or if this was just a one-day anomaly. My view is that the trendline break is meaningful.

The NASDAQ Composite hasn’t been quite as forgiving, since its trendline damage was much worse. It spent the entirety of last week below the broken trendline.

Ever since August 6th of last year, precious metals have stunk out loud. We might get a bounce in the gold bugs index, but I think that horizontal line will be the limit.

Similar to the $COMPQ, the NASDAQ 100, symbol NDX, is quite plainly below broken support.

The S&P 100, symbol $OEX, remains below support as well, in spite of the very sizable rally this morning.

The same can be said of the Russell, since last Thursday’s drop was so substantial.

One area of resolute strength for the bulls is the semiconductor index, symbol $SOX, which has been safely within its channel for going on a year now.

The S&P 500, symbol $SPX, teased us all a bit late last week with a trendline break, but it has clamored back above it. We are still below lifetime highs, and I think the ecstasy over the $1.9 trillion in free money that’s about to be distributed will be transitory.

Just as the semiconductor space has been unbroken, so, too, has the Broker/Dealer Index (symbol $XMI). We are sky-high on this.

Lastly, the most vulnerable sector, in spite of all the breathless enthusiasm about crude oil, is the Oil & Gas sector (symbol $XOI). The run-up has been sensational, but that is a massive and powerful top.

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.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.