“Stick to the Plan. Not your Emotions” – Unknown
Round Number Rodeo Again:
Long-time readers of mine know my affinity for round numbers and the fact that the S&P 500 is ready to challenge 6000 so quickly after retreating there just a couple of weeks ago speaks volumes. Last week ignored the bearish island reversal with the gap down from 11/6 (after the gap up from the 11/5 session). Looking at the Nasdaq that too is dealing with round number theory at the 19000 area but is acting well POST breakout above the cup with handle breakout pivot of 18785 from 11/6. Curiously notice, it has not surpassed its gap down from the 11/14 session. Peering at some of the other major benchmarks the IWM has not yet met its measured move to 258 from the ascending triangle breakout of 227 and that was retested precisely and held last Tuesday. Even the Dow has been acting well since the start of Q4 as seen here, slightly besting the S&P 500 and Nasdaq. And this is all occurring with gold and the dollar marching higher. And of course, how can we not speak about round number theory without mentioning bitcoin? It traveled to within a hair of 100K, but on the MONTHLY chart looks great above the cup with handle pivot of 73,800 or the flag trigger of 72,000 which carries a measured move to 123,000.