Index Insights

one month down, eleven to go

That was quite a week, eh, folks? We started off with an epic plunge, thanks to DeepSeek, and although it wasn't clear at the top, the opening price was pretty much the lower for the entire move. Following that, in a sea of endless giddiness and optimism, the bulls kept pushing back to a strong Friday open. Thanks to the 37th surprise tariff announcement, which is the one that seemed to really count, the rug got pulled out.

I wanted to thumb through some key index charts for my premium members and share a few words about them. I've grouped these into three general families: the first of which is clean reversals, the second of which I would categorize as Big Fat Mess, and the third of which is major signal.

Let's begin with the Dow Jones Industrial Average:

This was a good, clean reversal and, almost to the hundredth of a point, perfect double top. Following the lifetime high on December 4th, the Dow fell every single day for weeks, and then it spent the past few weeks undoing the damage. The strong open Friday marked the top and, God willing, the ultimate top.