12.18.2021

THE DOW DAILY CHART

The INDEX has been in a TORRID march higher. Now we see a possible CORRECTIVE structure that could test the bottom of the channel. This is significant for us, as a break could signify a deeper, more prolonged sell-off. This coincides with a PIVOT in MONETARY POLICY.

SPX DAILY

The S&P index also appears to be set for a corrective move lower. We identify a DOUBLE TOP and a NECKLINE, that if breached, could open the index to a deeper sell-off. There is also a channel that could be compromised.

NASDAQ DAILY

This index has been the most vulnerable lately. This structure is corrective. A break of this structure and the INDEX could correct deeper.

NASDAQ WEEKLY

We EXPAND on the NASDAQ to illustrate the potential corrective move if support breaks. We are close to minor support. A break of this level opens the index for a deeper corrective move. Our base case is that this is should not be a major corrective sell-off, but we are respecting price and will continue to monitor the activity.