U.S. Index Update

U.S. indexes have pulled back a bit in recent days.  There isn’t really anything new to report, but I thought I’d update the way I see the charts.  The S&P is still in the body of a multi-year rising wedge.  It has pulled away from overhead resistance, and has rising support around 1800-1820.  Until that support is broken, I am trying to keep my bearish sentiment constrained.


The Russell 2000 has exploded higher over the last year.  It has broken under a smaller rising wedge, but looks to have support about 4% below the current price.  I am short IWM (and long RWM calls).


In the short term (and very long term), I have a bearish outlook for domestic equities.  However, the charts are far more appealing in many commodity sectors and emerging markets.


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