Many sectors of the market look ready to break one way or the other. Can we gain an edge as to which way they will go, or is it just a coin toss? Lets take a closer look.
This was the NASDAQ at the close on Monday. It was pushing against resistance in various forms.
Notice what seems to have showed up by the close today…
A bearish rising wedge. The NASDAQ looks like it is going to drop lower now. Futures are currently higher, so I am going against what I see.
The SPX was approaching resistance too, shown here.
After a brief rally, the SPX hit resistance and gave up Tuesdays gains. The markets may be setting up to pull back here. Futures are higher as I write, so we’ll see if they give it up as the day goes on. Let me explain why I think that may happen.
I had mentioned that I was finding a lot of charts that looked like a recovery, so that appeared bullish. I still think that the SOX and semiconductors look pretty good, and there are other stocks that have nice set ups too. I then mentioned that this would be a big week, because it was LOADED with earnings reports. Are the charts still holding up?
Look at that MACD as CMG approached the highs again. CMG was down another $64 after the markets closed ($50 when I drew this).
Signs are there that we may be ready to end this rally, especially if the rest of the earnings this week disappoint.
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~ALEX
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Big League Finance2015-10-21 14:07:032015-10-21 14:07:03Public Post – Equity Markets at Resistance
The Coin Toss Slight Variations
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