The NDX, Nasdaq Index, has been struggling. Apple Computer has kept it down. It has battled to gain back territory. We have been short Apple for many months. We are still short Apple. The NDX is overbought and has pushed higher with almost no pulse for the last two months. We think CGTS will lead the NDX lower over the next few weeks.
Click to enlarge
What about small-cap stocks. The RUT is very much like the other indexes we’ve been viewing: struggling back after a sell-off; but no pulse. Meaning lower prices are almost guaranteed. Note below in the Central Pane I put in a downtrend line on the CGTS indicator, indicating where I think the index is heading.
Click to enlarge
Semiconductor stocks? The SOX did generate a bit more pulse than most other indexes when it rallied this week. But it still looks dismal, when compared with real rallies in the chart. It is overbought now, and should go lower – unless Bernanke unleashes a new round of purchases of index futures to make sure the indexes go up.
Click to enlarge
