A Bubble That Will Live in Infamy – Ep. 422
The Peter Schiff Show Podcast - A podcast by Peter Schiff
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Pearl Harbor Day 2018: A Very Interesting Technical Day
Today is December 7th, a day that will live in infamy. Unless you are a Millennial who was educated in the U.S. public school system. In which case you have absolutely no idea what happened on December 7th 1941. You've probably never heard of Pearl Harbor, you certainly don't know where Pearl Harbor is located. Maybe you've heard of World War II, but a lot of them haven't. Even those who have heard of World War II probably have no idea who fought, or even who won.
As Goes the NASDAQ, so Goes the Rest of the Market
Today, December 7th maybe won't live in infamy, but it seems to me it was a very interesting technical day in the U.S. stock market, which should give the bulls on the stock market something to think about. I think the action today, particularly in the NASDAQ, (I think as goes the NASDAQ, so goes the rest of the market) but that action was particularly significant.
An "Outside Day"
One of the more reliable technical patterns is an "Outside Day". An outside day is when you trade above and below the highs and lows of the previous day, and then close above or below one of those lows. It's an outside day even if you close somewhere in the middle. An "Inside Day" is when you trade within the range of the previous day; you don't take out the high or the low. But the most significant type of an outside day is an outside day where you close above or below the previous day's high or low. That would be called an "Outside Reversal Day". It' s a positive if you could take out the previous day's low, but then rally and then close above the previous day's high.
The Russell 2000 and the NASDAQ Took out Yesterday's Lows
What the NASDAQ did today was the opposite of that. The NASDAQ rallied this morning on, I guess the weaker than expected jobs numbers and took out the highs from yesterday. In fact, all of the major markets - the Dow, the NASDAQ, the Russell 2000 - they all took out yesterday's highs. But then they came crashing down, The Dow did not take out yesterday's low - so the Dow did not have an outside day. But both the Russell 2000 and the NASDAQ took out yesterday's lows.
