Verizon to cut 15,000 jobs amid growing competition pressures - WSJ
We are seeing a technical bounce at moving average support, but how it’s evolving is subject to interpretation. On the bullish side, we have the Dow Jones Industrial Average making a new closing high (but not absolute high), while bears have staged an aggressive attack against Bitcoin at its 20-day MA. It’s not great that tech-bro-loving Bitcoin is taking a hit on what looked to be a workable low, and it’s left to defensive (old-timer) Dow Industrials to lead the bullish charge.
The one to watch is Bitcoin. A 3% loss on the day is not great, particularly for an asset that has acted all "grown up" since the days of its wild swings. It was notable it reversed from its 20-day MA in what looked like an algo-driven short attack. If it loses the psychological support of $100K, then it will likely take tech and semiconductor indices down with it.
The lack of Tech leadership from the likes of Elon Musk, Mark Zuckerberg, and now, Bill Gates, just shows how money can’t buy smarts. Unfortunately, these individuals have too many enablers to suggest there will be a change for the better. The Y2K crash was driven by false economics; the next crash will be driven by the wilful ignorance of the facts of this world.
What Bitcoin is to bears, the Dow Industrial is to bulls. If this can continue today, it will be the first index to make new all-time highs. This will be a timely reversal as the index has been underperforming relative to peer indices for most of 2025, but this may be about to change. The key disappointment is the lack of buying volume.
The Russell 2000 (IWM) could go either way. Tuesday’s small change helped negate the bearish black candlestick from Monday. I think this is set for a gain today, but if this banks a loss, it would return the 50-day MA as resistance. Note the lack of buying volume on Tuesday and Monday (although it was enough to generate a ’buy’ trigger in On-Balance-Volume).
The S&P 500 finished near its high, and is ready for an opening gap higher today. I like the upturn at mid-level stochastics [39,1], and the relative performance gain against the Nasdaq. I also like the upward trend in On-Balance-Volume. It’s bullish, but maybe not as much as the Dow Industrial Average.
The Nasdaq wants to be bullish, but Bitcoin is weighing on it. Technicals are mixed, but intermediate stochastics [39,1] are bullish - having bounced off the midline - this is important for the index. Relative performance has been running sharply in its favor. Tuesday’s candlestick finish looks bullish, but if we see a gap higher and a ’black’ candlestick, then it might be the bull’s last hurrah.
When studying technical analysis, one can’t be guided by personal opinions as to what may (or may not) happen. I detest the current American administration (as an American), but markets care little for opinion, which is why I depend on historic relative performance to 200-day MAs and #sectorbreadth analysis for determining tops and bottoms, as these are a pure numbers game.
In this regard, we are close to a top, but maybe not *the* top. I think American political incompetence and corruption will come back to bite the market (hard), but we are not there yet. We need to see how markets react to the test of October highs, which is likely coming off this bounce.