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Index Blues: 6 Charts Show Downlegs To Continue

By Tim KnightStock MarketsMar 09, 2021 12:11AM ET
www.investing.com/analysis/index-blues-6-charts-show-downlegs-to-continue-200565902
Index Blues: 6 Charts Show Downlegs To Continue
By Tim Knight   |  Mar 09, 2021 12:11AM ET
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Yesterday—Monday, Mar. 8—when the Dow hit the highest point in human history while at the same time the NASDAQ hit “correction territory” since it is 10% off its own highs, let’s catch up with some big markets.

The Dow Composite, aided by the Industrials, tagged its upper trendline. The wedge says it all, though.

COMP Chart
COMP Chart

The NASDAQ has been leading the way down, having tagged its own wedge the exact same way, except weeks ago. I think we’re on track to hit one of those lower trendlines I’ve drawn.

COMPQ Chart
COMPQ Chart

Gold, of course, stinks. The miners may have a bounce, sure, but I think ultimately they are going to utterly crumble beneath that right triangle pattern.

HUI Index Chart
HUI Index Chart

One of the biggest chart events of the past few days have been the failure of the semiconductor index. This is tremendous!

SOX Index Chart
SOX Index Chart

The S&P 500 is starting to tiptoe away from its own wedge pattern. Short-term, I think a trip to that horizontal is in order. 

SPX Chart
SPX Chart

Lastly, my fondness for energy shorts is unbowed. I think the oil/gas index is one of the most precarious charts on the planet right now.

XOI Chart
XOI Chart

Index Blues: 6 Charts Show Downlegs To Continue
 

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Index Blues: 6 Charts Show Downlegs To Continue

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Comments (1)
Shane Gg
Shane Gg Mar 09, 2021 8:45AM ET
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I can't over-state how much I appreciate your articles. I get really annoyed looking at major news outlets pretending everything is peachy and that because indices went back up a little the corrections are over and there's nothing but blue skies ahead.
 
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