Rough Diamond:
As the unkempt trade between the very round 19000-20000 numbers rambles on some new bearish patterns are presenting themselves. Remember this awkward, erratic action is often associated with topping behavior, and when the tech-heavy Nasdaq makes contact with 20000 some bearish candles have been produced. Notice here the spinning tops on 12/12, 12/17, and 12/26 followed by a doji on 1/6 and then finally a dark cloud cover on 1/24. These all indicate fatigue and it feels like the benchmark is running low on stamina. I have spoken about this in lengthy fashion as of late, but I will be open-minded if this 20000 barrier is taken out to the upside as I know markets do their best to confound the most. The WEEKLY chart I have mixed emotions with the bearish RSI divergence with a higher low during last summer and Q4 as PRICE made a higher high. But one could make the case for a bull flag and a break above 20K carrying a measured move to 23000. Technology overall via the XLK is the worst of the major 11 S&P sectors YTD (coming into Tuesday and only one negative). Bulls would say it is likely oversold, bears that the pain could be just beginning.