Round Number Roadblock?
Round number theory is incorporated into my daily work as are others and this week witnessed it at play. Below is the chart of the IGV and it shows Thursday with a spinning top candle (which could also be interpreted as a shooting star) right at the 300 figure. Those are adept at signaling possible changes in the prevailing trend which has been up since last October. The group witnessed some huge WEEKLY moves with AI and RPD among the strongest (the former ripped off the very round 10 number in a bullish morning star pattern completed on 12/29). Something seems to be percolating with ZIP which has advanced 17 of the 20 last sessions. But overall this group needs to display it’s pulling its weight. In four of the last 5 weeks, it has been outshined by the SMH, with the most visible being the first week of 2023 as the IGV fell by .9% whereas the SMH rose by 4.3%, a very noticeable divergence. The best thing that could occur here is for some of the wild excesses from this past Wednesday and the start of Thursday to be worked off and see a successful retest somewhere just above the 200-day SMA.