A Fractured Market: Three Groups Of Indexes Tell Different Stories

The market is very fractured right now. I propose three different groups of indexes, depending on their configuration.

The first, and smallest, are those indexes (tech-dominated) that are at lifetime highs and whose ascent can basically feed on itself. A failure of the bulls to keep this above the breakout levels would be a big deal. These indexes are poised to keep going up in perpetuity, or at least until they run out of suckers.

Nasdaq Composite

Nasdaq 100

The next group is in the “close, but no cigar” category. These could EASILY push themselves into the first category with just one good, strong day, but as it is now, the jury is still out of whether these are out of breath or not.

S&P 100

Semiconductor Index

S&P 500

Oil and Gas Index

Finally, there are the honest-to-goodness bearishly configured charts. It seems hard to believe, but these actually represent collections of equities in which the bears have been winning and are poised to potentially keep doing so.