Scariest Chart
#2
Posted 11 May 2020 - 09:53 AM
I think eventually the growing divergence between SOX and NDX is going to cause a reaction down.
But things could drag out until next week before that happens.
Using SOX trading below today's open now as first possible warning sign...
The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy
#4
Posted 11 May 2020 - 10:11 AM
#5
Posted 11 May 2020 - 10:15 AM
Bottom line: Until the BIG 5 start to show any sign of cracks, this thing aint going down in any meaningful way
The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy
#6
Posted 11 May 2020 - 11:26 AM
#8
Posted 11 May 2020 - 12:46 PM
Ive come to the conclusion the only breadth I really want to worry about is the SP500......when the small company breadth is sparkling, thats the worst thing for the bulls. A top is just around the corner. And the NDX breadth is probably too narrow with just 100. SPX is just the right temperature......big capitalization and 500 of them. And its not the day to day number that can do handsprings......I want to stare at the 200 day MA on the chart. Even get rid of the data on the chart and pay attention to the 200.
This is exactly why I use MACD on SP500 - I found the trends in this did not work on other indexes. SP500 is in the Goldilocks zone as far as stock count and not being too cap weighted lopsided.
#9
Posted 11 May 2020 - 01:35 PM
#10
Posted 11 May 2020 - 03:22 PM
Very disappointing, NQ lost the whole breakout in the last two minutes.