Five Charts that tell the story. They should be, and typically are, coupled. Not always, not all the time. But I have watched all five indices together for a while, and this is the first time I have seen them as utterly disjointed as they are on this large of a scale.
Is the rally breaking down? I think there is a good shot, and if you are bullish and ignoring this or simply looking at one index ... well good luck with all that.
I am going to show 5 separate charts, instead of my 2 Overlay variation charts. You need to look at it like this, this is an eye-opener
Beloved SPX. You have seen a count of this on every EW blogging site in existence. No new story here. But this is *THE* Baseline. Let's see how the rest compare
Dow - the bastion of "strength", barely a pullback
Whoa. Hmmm. That's not so strong.
Hmmmm, neither is this one
Yikes!!! Wow what a turd. Question? What if RUT goes below the Oct 2 low ... I invite you to ponder that for a bit.
So the point is these indices are _almost_ telling completely different stories. **AND I POSIT THEY THEY ARE NOT ALLOWED TO!!!** They are allowed to tell a slightly differently *nuanced* story (and they normally do) because each one has different sector weightings and compositions. But this is the worst discrepancy I have seen yet during P2 between all Five.
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1 year ago