In the olden days we did not have chart machines on our desks. If you wanted to look at a chart of the indexes you had to use William O'Neil's Daily Graphs (which you then had to update yourself each day since they only came out once a week), or you could look in the Wall Street Journal where they printed a chart of the DJIA, the Transports and the Utes daily. Those were pretty much your choices, unless you kept them by hand yourself.
Back then the Heard on the Street column was a must read and the WSJ saw fit to place the charts of the three indexes right along side of that column so you were sure to see the charts. But the charts were only about six months in duration so very few people looked at charts beyond that.
Now everyone has charts on their desktops. Heck they can even pull them up on their mobile phones. That means the charts of the major indexes, even if you don't much care about charts, are readily available in any time frame, with any indicator, with moving average lines, any time you please. With that in mind, let's take a look at what everyone sees so clearly.
The one thing I will say is that if you do look at charts and you care about overhead resistance, it's hard to understand this desire for folks to tell us we're "all clear" on the markets.
Here's the DJIA. We saw it get through the first line of resistance (black) but are now pushing near the next resistance line at 24,500. But, I ask you, if we clear 24,500 is there a level that you see that says, okay, all clear? I don't. Maybe over 26,200. In other words, the blue line is obvious but there is resistance all the way up.
The only thing different with regard to the S&P chart is that it is already at the blue line. Over 2,800 you might finally say we're through resistance.
Nasdaq is eating its way through resistance with that blue downtrend line being what has stopped all the rallies since we rolled over last fall. What would you call the all clear here? Over the blue line or over 7,650 (the early October high)?
The Russell 2000 has a major flat line coming up around 1,475. Then there are two downtrend lines as well. Here too, it's about 100 points higher than where we are now that would tell you we've finally eaten through resistance.
So now you see the same charts everyone else sees when it comes to the major indexes. There is one more chart that has my eye. It's the chart of the VIX. It hasn't really made a lower low in four trading days. It is starting to feel like it is curling under to me. I don't think it wants to surge but if this curling under and rounding continues it should get the VIX to move up some in the next week.