Same old same old. Nasdaq 100 chart with false break preceding current drop could have been lifted out of China A50’s collapse back in June 2015.
Despite the severe bearish action around the globe yesterday following Kim’s missile flying over Japan and a sharp, not-unexpected u-turn during US trading hours, stock indices really did not make any significant move. Major indices are still trapped between last week’s (Jackson Hole) range except for DAX. It is a loss leader…
These could be leading elements of weakness among stock indices. Likely softening due to profit taking since they are not anywhere near to sweet spot that would entice sellers to come in.
Both XLK and NAS100 have broken ‘left shoulder’ which means that both bearish reversal patterns are back in play. NAS100 still resembles a ‘Head and Shoulders pattern’ though XLK is more like ‘Broadening Top’.
I share my observations of DAX30, EEM, Nasdaq 100. Considering how stock indices have been exceptionally risk-averse, exuberant, buoyant, I consider all these setups here as high risk.