CLICK ON CHART TO ENLARGE
Comedian Rodney Dangerfield made the phrase “I don’t get NO RESPECT” a big part of his comedy act. The “Power of the Pattern” above highlights times TO RESPECT support and resistance. Support/Buying opportunities took place at (2) twice and currently the NYSE is up against a series of resistance lines at (3).
These resistance lines don’t mean the market has to stop on a dime, yet resistance should be respected and protection of values is more often than not a good idea at times like these! With this resistance at hand, keep a close eye on how the hot performers/relative strength leaders of late, perform in the near term!
Speaking of respect…I would respect a breakout if it takes place!
T…Thanks for the kind words and viewership.
Your last comment is spot on, the 500 index does need a global break of falling resistance!
Chris
Chris, thanks for all your work. Great site.
I believe decoupling is a fantasy. It will only last until it doesn’t and then it will be a quick catch up.
This year the S&P is reversing performance roles played by the EEM and VGK in 2008. Living the temporary dream that decoupling in a global economy exists.
IMHO – on a longer term basis (months not days) any breakout in the US is only a buy if it is accompanied by the same breakout around the globe.