so, the NASDAQ looks unstoppable … we have sell patterns on the DOW, the S&P, the NYSE Index but the NASDAQ is moving into new territory and it sure looks like finishing/close to finishing a 5 wave sequence. So, why not do the XLP / NASDAQ? Honestly, I don’t know why I haven’t done this one before. I’ve always looked at the NYSE Index or the S&P versus the XLP. One would think that the high flyer would show tendencies to pivot UP or DOWN based on risk on/off mindset by the institutions, right?
so, here’s the XLP / NASDAQ and it paints a nice picture.
of note:
- XLP/NASDAQ
- note the AB=Cd pattern that is completing and showing a bullish hammer as of this past Friday’s close.
- RSI – been pegged at the lowest levels since 2000 and has finally showed some bullish divergence.
- we are BELOW the .786 retracement BUT we are not at new all time lows (vice the NASDAQ that is all all time highs)
- there is another level for targets lower (.886 retracement and 1.618 extension) if this level gives away …
- XLP/NASDA w/ the NASDAQ overlaid and INVERTED
- NOTE – EVERY major pivot higher/lower has been at a pivot of this ratio .
Folks … don’t get complacent as there is a very large probability that the next move – across the board – is down.
Just calling it like I see it …
Happy Father’s Day!
Bart
