It has been sometime since we looked at the charts of the three major indices, but it is not like anything is really changing. Enough babbling lets get right into it.
Dow Industrial Average
If it wasn’t for the Dow I could easily just sum everything up into one idea, but out of the three indices, the Dow is the only one to sink below its Novemeber’s low.
While it isn’t something to celebrate, at least we finally know something new. For a while now, all we could come up with was that the Dow was stuck in a trading range. Now it seems to have broken out to the down side.
There really isn’t much else to say except to see how low can we go.
S&P 500 and Nasdaq
If you look at the two charts side by side, they almost look identical. Based on this time frame, it looks like the two are still moving within their trading range; however, it looks like they are about to test support very soon. It will be interesting to see what happens.
Even if we see a bounce, there is really no positive until the Nasdaq crosses 1640 and the S&P moves past 930.
So what can we summarize from all this?
Obviously there is still much more beating to come. Be patient and don’t chase anything because there are way too many opportunities.