Monty: Take a look at the Dow with a weekly chart. You'll see MACD sell signals, and Donchian channel support around 9529. The SPX is nearer a support level in the weekly chart, though, at 974. The Naz is just about at a support level: 1696.
The narrowing Bollinger bands in the SPX and Naz suggest a breakout. The breakout could be above resistance or below support. Since the Dow has not reached support and since it's broken through the middle Bollinger band, it would seem to suggest a move lower. That would point to a breakout lower for the other indexes, the Naz and the SPX.
On the weekly chart, the NDX confirms this, because it has already broken through lower support on the weekly chart. It broke out of narrowing Bollinger bands, too.
The SOX has narrowing bands, too. And it hasn't yet reached support in the weekly chart, at 499. That, too, would suggest that the Naz and NDX could go lower.
Furthermore, the RUTX is at upper resistance on the weekly, and has just given a stochastics sell signal, falling below the signal line at 70. So that'll collapse, putting further pressure on the Naz.
Finally, the VXN has a lot of room to go higher.
So all in all ..... I'm bullish! Very bullish!!!! Because it's sinful to be bearish, and I simply will not allow it on this thread. |
