Something’s Gotta Give — Let Me Show You What I Mean
Today I thought I’d share with you a few observations I made this weekend
when looking at some index charts.
The most certain trends occur when several time frames line up and tell you
the same thing. Unfortunately, that is not happening at the moment,
I’m seeing the same story told in big caps (S&P 500), mid caps (S&P
400), and small caps (Russell 2000).
Here’s the S&P 500 daily and weekly…
An uptrending daily channel is clashing with a downtrending weekly channel.
Here’s the midcaps (S&P 400)…
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And now for the smallcaps (Russell 2000)…
When you’re trading near the lower channel line of a short term uptrend
and the upper channel line of a long-term down trend…well…something’s
gotta give (and pretty soon). Whether we break the upper (weekly) or lower
(daily) channel lines may provide us a nice clue to the next move. Stay tuned.
Best of luck with your trading,
Rob
robhanna@comcast.net