Public Post – Equity Markets at Resistance

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.

NASDAQ 10-19

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.

NASDAQ 10-20

The SPX  was approaching resistance too, shown here.

SPX 10-19

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.

SPX 10-20

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).


MU 10-20


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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