Although most index charts are just straight-up bottle rockets, here are three oddballs that are looking in serious trouble.
First up is the Dow Transports, which is about 90% done with an important top (pink tint), having broken away from its failed bullish base.
Next is the Dow Jones Utility, whose diamond pattern is still intact, and whose lower right trendline has served as reliable resistance for months. The cool thing is that prices are clinging to the Fibonacci like epoxy glue. If we can break below the Fib, it’s party time.
Last is the Russell 2000, in which I’m participating by way of September IWM puts.
I have overlaid three exponential moving averages which, for the moment, are still bullishly configured, but take note how the 50 is close to breaking below the 100. Let’s keep an eye on this.