The Big Picture Last week's Weekend Update ended with this warning: Monday becomes a critical day, and next week is even more critical. The result was that for the week the Dow was up about 600 points, but Nasdaq (QQQ) got crushed, down about 10% from its high (327.80) to low (297.45). Here are the graphic details: For anyone who thinks Friday's 900 Dow reversal from low to high was "bullish," let's put it in a longer-term context and not with the Dow but with the Nasdaq: Based on all of the charts above, and in reverse order of significance (QQQ 1 Month most important), the benefit of any directional doubt goes to the bearish case for the Nasdaq, and therefore the entire market. It will take the breaking of downtrends and higher highs before this bearish case is placed in any doubt. The big picture is down for the foreseeable future. Bitcoin This is our other big theme of 2021 and it is independent of the Dow, Nasdaq, Gold, Dollar, Interest Rates or the NHL. "What Is a Pennant? "In technical analysis, a pennant is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines—the pennant—followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole." Source - Investopedia A break-out above $50K this weekend, or anytime next week, would be a "Get Longer" signal, whether it be via Bitcoin or any of the Crypto Stocks below.
