The first week of February was down hard. The second week was up hard. And now, the third week, is a total muddle. I won't pretend I’m not disappointed that things have stalled out like this, but the silver lining is that we have violated key horizontals to the upside. We might – nowhere does it say we couldn’t – but I obviously hope we don’t! Here are the key levels:
Russell 2000
The Industrials
The NASDAQ
And the Dow Composite
I would also note that the moving averages are still completely on the side of the bulls. Even with the ostensibly scary selloff early this month, you can hardly see a dent and nothing has crossed beneath anything else. It’s still a smooth, steady ride higher.
