Another Major Index At A Crossroads

By Dana Lyons of J. Lyons Fund Management
As with many indices we’ve mentioned recently, the NYSE Composite has rallied up to a potentially significant convergence of resistance.
Continuing with the weekly theme yet again, another major index – the NYSE Composite – has seen its rally reach a potentially consequential area of resistance. It’s actually been 2 weeks now that we’ve been on this series highlighting various indices reaching a potential stalling point in their post-February rally. Of course, this is based strictly on chart-based analyses, which now appear poised to do battle with the still positive forces that we’ve noted in breadth, momentum and sentiment.
This resistance theme that we’ve focused on seems to have been validated as, for the most part, the indices which we’ve highlighted have struggled to make much headway since hitting the identified areas on their charts. This includes some broader and small-cap indices that we noted 2 weeks ago which, despite the large-cap indices continuing to make rally highs this week, have themselves been unable to make much progress. Next in line in this battle appears to be the NYSE Composite. Similar to prior indices covered this week, the NYSE is just now reaching the convergence of its broken post-2009 Up trendline and the post-May Down trendline.

This post was published at Zero Hedge on 03/19/2016 –.