Tuesday, September 29, 2009
Dow and Nasdaqs Lagging S&P; September 29, 2009
Above are 5 minute Dow and S&P cash charts. The Nasdaqs sport very similar structure to that of the Dow. You can see a clear head and shoulders bearish pattern in the S&P chart, as well as the fact that the Dow's right shoulder lagged the S&P's right shoulder significantly, and is now dragging much lower than the S&P. The Nasdaqs are trading lower with the Dow. The head and shoulders pattern along with the lagging nature of the Nasdaqs and Dow tell me that this market is severely exhausting to the upside. We already know this is the case in the bigger picture daily charts, but now we're seeing it in the short time frame 5 and 3 minute charts. It appears that the Dow and Nasdaqs are leading the S&P and overall market lower.
I'm holding firm being aggressively bearish as long as the S&P cash stays below 1078.