Internet stocks still unbroken, but…

In NFTRH we track the weekly chart of an index of internet stocks (DJINET) as part of the US Stock Market segment. It has been noted as one of the few unbroken indexes and several individual items have remained technically intact. Also, if the market were to bounce (hint: don’t look at the futures this morning) the 280 area on the DJINET would be a buy for bounce traders (i.e. counter market trend) in a relatively strong sector.

So the question is, will DJINET hold support or break down with the rest of the market? Here’s the weekly view.

Here is Amazon, which we had as a successful NFTRH+ long in 2015. In a bull market it sure looks like a buy. Problem is, if this morning’s activity flows through people are going to start uttering “bear market!” far and wide because the venerable S&P 500 would finally be cracking.

Sentiment is bleak and when the next bounce comes it is going to be violent. But this would be an important breakdown on SPX if indeed pre-market follows through and does not whipsaw during the day/week. Still, it will be interesting to watch this relatively strong sector to see what it does at support.