Stocks finished the day slightly higher, with the S&P 500 rising by 14 bps and the Qs finishing lower by one bps. A lot is going on in the market, even though it seems like a whole bunch of nothing.
NASDAQ
I think the most critical chart starts with the NASDAQ Composite, with the index trying to break above critical resistance two days in a row and failing. There is an apparent and powerful resistance at 15,850, and it has held firm to this point.
It may look like a double bottom pattern to some, and it could be. But I would caution that this does not work out as a double pattern, and failing again at 15850 would likely drop the index below the previous lows. I remember this setup very well from the 2018 drop, with the perceived W pattern.
Is it a perfect match? No, of course not, but I think it just tells you that if you don’t get a break out by Thursday or Friday, good chance we are going much lower.
Dow Jones
Yesterday, the Dow Jones Industrial Average climbed right to the prior high on Nov. 8 and stopped. So like the NASDAQ, a critical level to be watched today, with failure leading to more weakness.
Russell 2000
Meanwhile, the Russell 2000 rose right back to the trend line and failed.
Apple
Meanwhile, the same story for Apple (NASDAQ:AAPL), trying to make a new high, but was unsuccessful.
Microsoft
It is the same story for Microsoft (NASDAQ:MSFT).
