Election Gap Filler:
As maddening stats abound regarding sentiment, especially how close we are to all-time highs could it be as simple as we as just rangebound? That argument could have been made before Thursday’s plunge with the 19000-20000 range undercut, but trade has been a bit sloppy, (wide and loose PRICE action), and after a doubling of the Nasdaq from 10000-20000 it does feel like it is exhausted. This is a time to be very small or on the sidelines. I was slightly bullish a couple of weeks ago, but only if the tech-heavy benchmark could distance itself from the very round 20000 figure. That never happened, and the daily chart below shows how capital has been rotating overseas comparing it to the Dax (Germany) since the election. Of course, this is even more pronounced against China as seen here. The softness started in 2025 and looking at the RSI in the mid-20s, where it was just before the Nasdaq started acting well against China perhaps we will see the nascent relationship start to unwind and tech firm. With the MONTHLY chart coming tomorrow the Nasdaq is looking at a third straight negative candle beginning with last December’s bearish shooting star (January spinning top). All 3 months were above 20000 intramonth, but none CLOSED above and it is doubtful Friday will advance 1500 points.