The tech sector leadership has been destroyed today. The FANG stocks have suffered reputational damage from the Facebook data scandal. On top of the bad news, the beloved Nvidia also tanked due to the fatal accident involving a self-driving car.
The tech sector leadership has been destroyed today. The FANG stocks have suffered reputational damage from the Facebook data scandal. On top of the bad news, the beloved Nvidia also tanked due to the fatal accident involving a self-driving car.
In three days, the DOW traveled down 1400 points. It can make any investor nauseous. This is the precise time that requires emotional discipline. A emotional reaction will do its best to separate you from your hard earned money.
While NASDAQ has taken out the Jan 2018 high two weeks ago, S&P 500 cash index just registered a weekly buy signal, the DOW is lagging behind. The daily DOW index is tightly contained in a triangle. The divergence between DOW, NASDAQ and S&P 500 is reflecting the deep concern of the trade war.
The NASDAQ has taken out the Jan 2018 high while both the DOW and S&P 500 were contained below the Jan 2018 high. Tech is still the leader, Tech is where the growth story is. Since this is the beginning of the 2nd half of the 4-year cycle, the first half of 2018 appeared to be choppy consolidation.
Today the S&P 500 cash index took out the previous day’s high and closed above it. Not only it closed above the previous day high, it also closed above the weekly and monthly pivot range. The strong close implies that the daily cycle low is in place. This daily cycle finished in 14 days, which is relatively short in cycle length.
