New highs in the major market indexes are not necessarily a one-size-fits-all affair, as certain once-hot areas of the market come under pressure. Currently, as we head into New Year’s Eve, I’m not seeing anything that shines that brightly on my long entry radar, unless I’m looking to buy deep pullbacks. That, however, is good enough, as there has been a multitude of pullbacks, some sharper than others and some perhaps due to year-end tax selling, in names we’ve been watching and working, which of course has opportunistic implications.
The NASDAQ Composite Index pulled back slightly today as it found resistance along the ascending highs trendline that forms the top of an ascending wedge type of formation. Ascending wedges are typically considered cautionary, but in this market assuming that what is typical will hold sway has not necessarily been the thing to do. For now, the indexes remain in uptrends.
