Wednesday, May 21, 2014
Hey, whatever happened to the Nasdaq?
So I'm sure you know the SPY has been doing this:
That is, consolidating before a move higher.
Oh but it can't be, you say! Because look what's happened to the R2K!
Oh my god! It's "drawing a head-and-shoulders top", which means the SPY is about to collapse as "leadership narrows"! "I mean, look at the H&S in the Nasdaq!:"
Wait, what? H&S in the Nasqaq? Where?
Seems all you're seeing is a sector rebalancing after all. Because the Nasdaq is simply failing to collapse.
Thereupon, the key is the constant new highs in the $TRAN and $INDU, which means everything is still going fine.
Tune out every single clown who's been selling you the H&S top story. Tune them out forever.