by winston » Mon Aug 21, 2017 9:59 am
CHARTS
NASDAQ: Showing a doji over the 2016 trendline, holding at the prior week's low and the 61% Fibonacci retracement. That has NASDAQ showing a double bottom at that retracement, and that pattern at that level is a good rally point. Compare to the action May to early July: Rally, double bottom at the 61%/78% Fibonacci retracement, then a rally to a new high.
DJ30: Yes DJ30 sold off Thursday with the market, Friday as well. This all inside the July to August run to a new high. DJ30 has stair-stepped back to the 50 day MA's and the 78% Fibonacci retracement. That, despite the selling, puts DJ30 in great position to rebound again.
SP500: Broke the 2016 trendline Thursday, sold farther Friday, showing a doji -- just as the prior Friday. Of all the large cap indices, SP500 shows the most Gartman-like concern: new low to end the week after a new low the prior week. We went ahead and picked up a partial downside position on SP500 to end the week.
RUTX: Same action as SP400, just sharper. Held the 200 day the prior week, bounced, rolled back over and crashed the 200 day Thursday. A big selloff Friday with a gap lower, but recovering off the low to a doji with tail. On the Friday low it tested the May and some of the April lows. RUTX is in a range where it can find support to bounce. It likely attempts a recovery
early week, stalls at the 200 day, then heads down to test the January, March, April lows.
Source: Investment House
It's all about "how much you made when you were right" & "how little you lost when you were wrong"