Three Kings

Ladies and Gentlemen, I give you for your consideration the Three Kings of Market indices as represented by their respective ETFs.  The S&P 500 {SPY}, the Nasdaq as represented by ETF Symbol ONEQ and the granddaddy of all indices, the Dow Jones Industrial Average {DIA}.  You can double click on each if you want to make them larger.  What do we notice about all three?

1.  Each is a mirror image of the other in terms of how they've traded over the past ten months.  

2.  Each broke out of a consolidation pattern back at the beginning of the year

3.  Each seems to have currently run into a bit of resistance.

4.  Each is also currently overbought by our work longer term.

Markets may experience a bit of a bounce today or tomorrow after a rough go of it over the past few days.  We will have to monitor how these indices react to their current levels of resistance {about 1% now above where these currently trade} for clues as to market direction going forward.

Out tomorrow.

Charts are from FINVIZ.com.

*Long ETFs related to all three of these indices.  ETFs related to the Nasdaq and the S&P 500 I am long in both client and personal accounts.  Long DIA as a legacy investment in certain client accounts.  Please note these positions can change at any time without notice to our readers.