U.S. Equity Strategy: Defensive Areas Weakening; Broad Market Attempting to Bottom

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Nasdaq-100 Stock Index / Technical Analysis

SOX index bull turn at 1,520 support sets the stage for a reach for recent highs. 1,588 is the level to clear to challenge recent highs that have to date chiseled out a triple top, representing a critical make or break level for the SOX index that will impact the NDX (underperforming the SPX).Relative to SPX, SMH is an O/P as long as trendline support holds. Must clear relative highs. Any break of this trendline would imply we see a triple top at 123.Relative trendline support is a key pivot level for the bull/bear bias that would bleed into absolute price action and impact NDX price action.Bull wedge breakout needs follow through above SMH 121.32 to reach for the 123 triple top level. Buy volumes are under scrutiny and need to pick up on a bull thrust or risk an early rally fade.

SOX index bull turn at 1,520 support sets the stage for a reach for recent highs. 1,588 is the level to clear to challenge recent highs that have to date chiseled out a triple top, representing a critical make or break level for the SOX index that will impact the NDX (underperforming the SPX).Relative to SPX, SMH is an O/P as long as trendline support holds. Must clear relative highs. Any break of this trendline would imply we see a triple top at 123.Relative trendline support is a key pivot level for the bull/bear bias that would bleed into absolute price action and impact NDX price action.Bull wedge breakout needs follow through above SMH 121.32 to reach for the 123 triple top level. Buy volumes are under scrutiny and need to pick up on a bull thrust or risk an early rally fade.

SOX (SMH) Bull Wedge to Reach for a New High