In the week ahead make note of these important economic announcements.
· Weds: Housing Starts 8:30 ET
· Thurs: Industrial Production 9:15 ET
· Thurs: Producer Price Index 8:30 ET
· Thurs: Jobless Claims 8:30 ET
· Fri: Consumer Price Index 8:30 ET
If you look at the Dow versus the NASDAQ, you can see the divergence in strength. The NASDAQ is showing to be the strongest out of all the indices, putting in higher highs and higher lows, while the Dow struggles to hold at the bottom of its sideways channel.
Look for the NASDAQ to break below it’s up channel and the Dow to break down from its sideways channel to get bearish. Be prepared for false breaks intraday as we are still moving sideways on the weeklies.