I look at the Yearly current pivot as a really important level. The current yearly pivot is :
(HIgh this year + low this year + close of yesterday) /3
That was 463.41 and for today is 465.14.
you can do this for the quarter month and week as well. AAPL suckers are still stuck above 542' 's which is this the high yearly pivot for this year. The reason shorty is so wrong on the index in general is because this years pivot is currently at 1620.13 and likely higher tomorrow.
The chart is telling you that there is no damage at all to the index and yet shorty is fighting the chart. There is no damage until you are under the current yearly pivot and stay under it.
Seems like voodoo but it's not.
Notice how the pos NAS composite lost it. But the game is not over until you break the current year dynamic pivot. and stay under it. NAS COMPOSITE had to be painted today along with SNP. They had no choice.
NAS COMPOSITE was telling you loud and clear that there was no demand above 3735.70 today.
Maybe that changes tomorrow maybe not but to start things out......none.
Ever open a futures account? They have auto-liquidations that happen all the time. So if it is known where the majority of liquidations will occur then you go there when it pays to go there.
There are many rookie dow futures traders. They did not do their homework. The dow shuffle implies that 15423 was a given anyway. This all gets settled Sept 20th anyway. New DOW on Sept 23.
Little over shoot above 15308. I am assuming that 15298.47 on the INDU is going to be defended for a bit. They pretty much have to from what I can see.
Of course it's resistance. Most of the index is in the toilet. Do some basic math. The all time highs for the stocks in the index averaged out are 103.20. If you take the average of them now its in the 65 to 68 dollar range. This is not a bull market. It's been a few names with a shuffle. Say whatever you want, but that is the truth.
Even with the upcoming DOW changes that index is still a mess. Rigging indexes is simply about running a few and purging names out of them to keep them looking pretty,
It means that AAPL is a broken stock. It has lost more than 20% off its peak value.
It all comes down to looking at the parts that are inside an INDEX.
The ponzi is not the only issue because it has not touched all stocks. Look at the game that is now being played with the DOW. If the dow divisor does not change, then in theory, the DOW would be over 18000 right now. The bottom line is that all shorts in the YM pretty much have to cover. But that being said, 12 stocks in the DOW index are still damaged and probably will not make new all time highs. That is the main way to rig a stock index. So on Sept 23 we will see how this plays out. Interesting timing for sure.
So if the DOW divisor remains the same then the new benchmark is 21976.93 assuming that all components in the DOW do not ever make a new all time high.
That's above the pay grade for many to understand what you are referring to.
Professional gap downs are placed in the chart for a reason. IN the gap now.
Starting August 1st, only 11 days of activity above 168.38. So back above it today.
You are correct about the market dynamics changing. But the DOW stocks are still somewhat "legit". 8 of them are going nowhere.
It's been over.
No new highs in the dow. Nope. Dow components already did it.
Too much damage in there. 8 stocks in there simply will never get to new highs.
AA, BAC, CSCO, GE, INTC, INTC, PFE, T, VZ.
It's just not going to happen. Those 8 stocks represent 3423.77 dow points if they were to return to their all time highs with the current dow divisor.
As of the close, they represented only 1541.53 dow points.
All time average high for the DOW stocks based only on price is 83.94. Current average is 64.97. There is no price appreciation. Simple bait and switch. Nothing more.
The SNP is pretty much the same. The way the index is calculated masks the truth.
The all time average high for all the components is 103.20 and the value now is 68.44.
Nothing good going on.
It is a mess and continues to be. 8 stocks in there out of 30 to never ever recover.
Just not going to happen.
My guess is that at least 4 dow stocks are coming out of there. Then back to business as usual.