As we sputter our way toward the Thanksgiving holiday, the markets are extraordinarily quiet (and, as a reminder, remember that Friday is a half-day for trading). The small caps, shown here via the /RTY futures, bounced off a trendline whose identity I did not recognize:
Changing from a minute chart (above) to a weekly chart (below), I had my answer: it was actually being repelled from the trendline based on the ancient December 26, 2018 bottom (I don’t even have to look up the date; I know the Mnuchin Bottom by heart). Pretty interesting, yes?
Looking over in tech-land, on the NQ, we’ve had a lower high recently. Of course, as insanely strong (and I do mean insanely – – how else can you account for niche car-maker Tesla (NASDAQ:TSLA) having HALF AT TRILLION dollar market cap?) all it would take would be a push above that red horizontal to supercharge the bull engines. As it is now, though, tech remains a relative laggard compared to the eye-melting Russell.
Oh, and poor old gold is finally catching a bid, but I strongly suspect it will be a short-lived one. That is a well-formed right triangle, and sure, it could easily punch its way back to that horizontal, but after that, I would expect it to just keep withering away.
