Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
You can see the same pattern in all the major indexes. If anything the Russell 2000 and NASDAQ are better reflections of this inverse head and shoulders formation I have been flagging. I bracketed these shoulders in orange, so a cross above the upper orange line would be a positive. If the market can only continue to move sideways and not continue this move up, there are broader issues ahead. Still not enough information to make an intermediate term determination. For now, we continue to churn but keep an eye on the R2K as it seems the closest to breaking “out” if that is going to be the path – key level 830. The Equivalent S&P and NASDAQ levels are 1435 and 3034, respectively. Note the downward sloping 50 day MA on all 3 charts, but the R2K is basing above its while the other two are still below.
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