Resistance Again

We head into the weekend at resistance, with timing for The S&P 500 (ES Z0-D), The Dow ($INDU-D), The NASDAQ 100 ($NDX-D), Apple (now over 20% of The NASDAQ) and Gold (YG Z0-D). Prices don’t have to reverse, but the set up is forming.

I’m looking for a pause or a top early next week or early the following week. You can’t predict what is going to happen, but you can anticipate setups and then be ready if prices react.

I am seeing a number of serious divergences in the markets. Several key sectors are not going along for the ride and Small/Mid Caps are significantly underperforming the leaders. That said, there are a number of areas on the verge of major breakouts, so if these areas can get going, then this rally could go on for a while. QE 2.0 may be in full swing behind the scenes…

FYI, the purple lines below the charts are time cycles. The bigger the bar, the more important the date.