CHARTS
NASDAQ/SOX: Both of these indices broke to new highs last week. SOX broke through its upper channel line, NASDAQ likely touched what could be the upper channel line for a new channel. Both indices faded in a sharp Tuesday high to low reversal session. The rest of the week they were lower, but the sellers basically left.
After Tuesday there was no heavy selling. None of the indices could hold an early gain, but there was no high volume dumping as on Tuesday. That leaves NASDAQ and SOX in tight lateral consolidations over the 10 day EMA and in position to defy the odds and continue with more
upside. As noted Thursday, an important time for these two indices. And all the other indices.
SP500: SP500 definitely looks better than it did early week as it managed to hold the 50 day SMA with a pair of tight doji Thursday and Friday. It broke through the 50 day two Fridays back and then this fade. It set itself up for a possible bounce, but overall the pattern makes me a skeptic.
You can see the outline of an upward pointing wedge from the February selloff to present, all contained inside that selloff. That is not a bullish pattern. We will see how SP500 performs this week off the 50 day SMA test.
DJ30: DJ30's pattern is even harder to interpret. The selloff, then a slow rise in arguably a channel and arguably a triangle. Last week it put in a lower high and faded to the lower trendline. Still looks weak, but it has put itself in a position where it could bounce near term.
Source: Investment House