NASDAQ, QQQ, S&P100 Charts Bearing Down Heavily On SPX

Published 06/13/2016, 01:51 AM
Updated 07/09/2023, 06:32 AM

Following up from my last post where I focused on how the S&P head and shoulders neckline was going to hold, we have seen a blistering short squeeze since then that took all the major indices up to their upper channel line of their slowly descending channels.

Stocks Charts

The NASDAQ, PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) and S&P 100 (OEX) have already turned over right as they hit their upper channel lines. The S&P 500 however, popped above its channel line last week but fell back onto the upper channel line as the market shifted into major selling mode Friday.

Logic says the bearish situation of the first three indices, especially the $OEX (100 megastocks of the S&P 500), should outweigh the S&P 500 breakout and force it back down into its channel next week. Considering the unusual price action in the SPDR S&P 500 (NYSE:SPY) lately, traders know that anything can happen in this environment.

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