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Point & Go Figure: QCOM, DJIA, NDX, SPX, RUT


I'm feeling like a bull in the headlights.


Market Overview:

The short-term conditions continue to deteriorate from high-risk levels. The Percent Above 50-day Moving Average Indicators for both the NYSE and Nasdaq Composite are negative, having formed yet another lower high on their respective charts and exceeded previous bottoms.

The High-Low Index for the Nasdaq Composite and the NYSE are both negative. Moreover, the Nasdaq Composite High-Low has exceeded a previous bottom.

The NYSE Cumulative Advance/Decline line has reversed down, the first reversal down since last September. The Nasdaq Cumulative Advance/Decline line is also negative.

Meanwhile, the longer-term bullish percent Indices for the NYSE and Nasdaq Composite are both still in Xs, but the larger pattern of lower highs remains intact. The NYSE Bullish Percent remains within 1.5% of a reversal to negative, according to data from Investor's Intelligence.

Charts of Interest:
Qualcomm (QCOM)
(Chart courtesy
A move to 50 would form a bullish catapult pattern.

Qualcomm (QCOM)
(Chart courtesy Thomson Financial)
DeMark setups in place for QCOM and nearing potential 13 sell signal, but as PnF chart shows, the context is positive, and it would take a move to 45 to suggest a longer-term key trend reversal has occurred.

Dow Jones Industrial Average
(Chart courtesy

(Chart courtesy
A move to 1630 would confirm, a potential head and shoulders pattern in the NDX that is evident even on a PnF basis.

S&P 500
(Chart courtesy
The SPX 5x3 chart shows a potential shakeout pattern, which is bullish. However, the S&P 500 Bullish Percent remains negative, controlled by supply, so that tempers any enthusiasm I might have for anything other than a potential short-term trade for the SPX.

Russell 2000
(Chart courtesy
RUT reversed back down to form a lower high after the initial bounce from 714. A move to 712 would be the first test of long-term trendline support since January. Meanwhile, note the price objective on the downside - 682. Suggests risk remains high for RUT.

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Position in RUT/SPX equivalents.

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