Wall Street uses the Dow Jones Industrials and the SP500 as marketing tools, yet there are other less well known indexes that portray the stock market trend better.

The NYSE Major Market Index (XMI) was the 'go-to index' before the 1987 crash, quoted daily, in the media all the time, but now forgotten. It is made up of 20 big stocks, which reflect a closer relationship to the economy than the Dow Jones does. 

The chart below shows the NYSE Major Market Index is at strong resistance. The INDU and SP500 show a megaphone pattern which is not a great bullish pattern. 

Maybe once US mi terms are over the selling will start.

Keep an eye on it.

Click on picture to enlarge

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net 

Investing Quote...

...“Stocks create their own field of action and power; power to attract and repel,which principle explains why certain stocks at times lead the market and ‘turn dead’ at other times”...

- William D Gann

.."Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected"..

- George Soros