Most major U.S. stock market averages did well last week, and several actually posted record highs (Nasdaq Composite Index & Russell 2000 Index).
The FAANG Composite Index by my calculation was up 1.17% last week as the Nasdaq Composite Index rose 1.20%.
So why was Intel down 3.5% on the week after posting a 17-year high on Monday, June 4th at $57.59/share? At its intra-day high last Monday, Intel was up 73% over the last 11 months since posting an intra-day low at $33.22/share in mid-July 2017.
A weekly chart sell signal was triggered by my computer trading system at Friday's close (June 8th) for Intel's stock!
Later this year, when most major stock market averages are down 20% or more, we will look back at last week's all-time high in the Nasdaq Composite Index as a major trap for uninformed bullish investors who were over-committed to U.S equities and dangerously over-weighted in technology stocks!
Intel will then be seen as the "straw that broke the camel's back" and THE warning sign that U.S. stock prices are now vulnerable to a major correction!
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| FAANG Composite Index Weekly Chart |
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| Intel Corp Weekly Chart |
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| Nasdaq Composite Index Weekly Chart |
