From the desk of Steve Strazza @Sstrazza
Our Top 10 Charts Report was just published.
In this weekly note, we highlight 10 of the most important charts or themes we're currently seeing in asset classes around the world.
Indexes Hit New Lows
We’re seeing more and more stocks and indexes resolve lower from distribution patterns and violate critical support levels. Many more are on the brink, challenging pivot lows and threatening to follow their path.
The Nasdaq 100 (QQQ) and Russell 2000 (IWM) are excellent examples of this as both are violating their recent lows and resolving to the downside. We’re paying extra special attention to these patterns as their breakdown levels coincide with the AVWAPs from the COVID lows. These levels represent the price the average investor has paid for shares since March 2020, making them logical potential support zones.
Now that these indexes have taken out the confluence of support at their pivot lows, we’re likely to see further downside and increased volatility. Bulls need to come out and repair this damage immediately.
