Let’s survey some key index charts.
We start with the S&P 500 (SPY) which has clearly broken its 2026 ascending trendline. So long as it stays beneath this broken line, the bears have a fighting chance.
The Russell 2000 (IWM) is near major support by way of the lower trendline. A failure there would be a big deal, sine this channel has been in place for a long time.
As with its bigger brother, the S&P 100 has broken its 2026 uptrend as well.
The NASDAQ 100 (QQQ) has been rangebound for over a month. The price gaps are the anchor points for those horizontal lines that I’ve drawn, and that defines the range.
China’s Hang Seng Index has hammered out a very clean top and looks ready for fall next week.
Similar to the NASDAQ 100, the NASDAQ Composite is rangebound and won’t be able to define a new trend until such time as it snaps out of its incarceration.
The Dow Industrials (DIA) has been the most consistently bearish index for the past month.
Importantly, its close companion the Dow Transportation Index has at long last broken an uptrend that has been in place for years.
Lastly, it’s worth noting that volatility is grinding around at nearly the low prices of the entire decade of the 2020s, since evidently there’s absolutely no chance anything bad will ever happen again.
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