Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Saturday, June 11, 2016

NASDAQ, QQQ & S&P100 Charts Are Bearing Down Heavily on the S&P500 Recent Breakout

Following up from my last post where I focused on how the S&P head and shoulders neckline was going to hold, we have seen a blistering short squeeze since then that took all the major indices up to their upper channel line of their slowly descending channels.  

The NASDAQ, QQQ and S&P 100 ($OEX) have already turned over right as they hit their upper channel lines.  The S&P 500 however, popped above its channel line last week but fell back onto the upper channel line as the market shifted into major selling mode Friday.

Logic says the bearish situation of the first three indices, especially the $OEX (100 megastocks of the S&P 500), should outweigh the S&P 500 breakout and force it back down into its channel next week.  Considering the unusual price action in the SPY lately, traders know that anything can happen in this environment.

Trade well my friends