Now that Jerome Hayden Powell has done his eight-times-a-year thing once more, let’s catch up on some important equity indexes. My conclusion is overall the same: he didn’t change a thing.
Look at the Dow Jones Composite. Yesterday’s Powell love-fest, which included his typical donning of his kneepads for the billionaire class, did nothing but produce a red bar. More importantly, it has become a cliché at this point that the days following the FOMC Kabuki theatre are quite weak. Break that horizontal line, and the Fed gets a black eye.
Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) all had oh-my-God earnings, but all that was good for was this lame spinning top on the NASDAQ 100:
The one that has me the most nervous is the Russell 2000. This sucker needs to weaken, and fast. We don’t want to see it go above that horizontal midline.
One of my favorite setups right now is energy (again). As long as the Oil Index doesn’t push above that price gap (see horizontal line), this is fine.
Let’s have one more look at the Dow Composite, this time with the %R and CCI indicators. Looks to be in a state of degradation to me.
