Image Source: PixabayLet’s catch up on some ETFs after this very, very green day. We begin with the biggest of the big, the SPY, which is re-approaching that terribly important red line, which marks a major Fibonacci level. It used to be support. Now it is resistance. Keep in mind, this is a huge week for the central bank douchebags (Japan on Tuesday, our own illustrious Fed on Wednesday).
The OEF, which is the S&P 100 ETF, is sporting a squeaky-clean price gap from last Wednesday/Thursday.
The QQQ is likewise approaching a crucial resistance level, which constitutes the base of a tremendous right triangle top.
Just as important is the semiconductor sector, which has, to my eyes, the most exciting pattern going on right now. Just tremendous.
The Dow had a big bump today, blowing away Friday’s drop and almost all of Thursday’s. The horizontal here is harder for me to place.
I’d like you to look at something for a moment. We all know the IWM (the small caps) has found support again and again………and again………..at its Fibonacci level. Some folks figure this is rock solid support and won’t ever be broken. It’s an understandable notion, considering how range-bound this sucker is.
Oh, WHOOPS, that was the IWM from 2021! My bad! Kindly take note of what happened when the Fib finally DID break.
All I’m saying is………..don’t be so sure that just because a line is drawn at the bottom of your screen means it can’t go below the line. Because it’s just your screen. The only firm support in this life is $0.00
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