For today’s analysis, I designed two charts to help determine market direction and trading opportunities.
Chart one shows the 2017 performance for the major US Indexes including market capitalization.
1. NASDAQ is leading followed by $SPX then $INDU
2. Large caps are leading followed by the small caps then mid-caps
3. For large caps, I use $OEX, the S&P 100
Recently, the media has been obsessed with selling in tech. This chart shows the NASDAQ Composite and the “big five,” helping to move the market.
Why the importance?
Many traders will use this group as a “canary in the mine,” so to speak, to help signal the next market pullback.
A. NASDAQ features the 65 EMA and trendline support
B. FB features the 20 SMA
C. AMZN features the 20 SMA
D. GOOGL features the 20 SMA
E. MSFT features the 20 SMA
F. AAPL features the 20 SMA