Astro is still frisky.
Yesterday morning we took a look at RUT, which has broken below support (now resistance) and noted that SPX and Dow were making a move that way as well as they tested support, while NDX was still above its key level.
Well who in this whipsaw market is surprised that these supports held and the whipsaw (i.e. lack of resolution) continues? If my theme for a general topping process into 2019 is correct then this is perfect as it keeps the grind (my new TA term) alive.
RUT hammered and reversed most of yesterday’s loss. Key short-term resistance awaits, however.
SPX, ugly as it is, held the support zone. Of course it did!
Dow did the same.
NDX was relatively firm all day.
None of these charts look good. But each of them can put on a grind through the holidays. They are not just going to break down and make the bears look like geniuses; not when the charts are this obviously bearish. Oh and remember that there is a lot of “DEATH CROSS!” hype out there and that almost demands a bounce of some kind.
It makes sense to keep an eye on RUT, which among other things could be a negative divergence for the USD (small caps do more domestic as opposed to export business, after all). Here is its negative leadership (vs. SPX) still on trend.
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