Investors have continued to see the march to all-time highs progress with fewer and fewer stocks following along. This was really the first week where we saw selling in the large-cap names. One area really under pressure is the auto business -- these charts are breaking down hard.
BMW looks like a long-term double top right now.
Toyota has been a leader, but this week it is falling hard. The uptrend is still intact, but $160 needs to hold.
General Motors broke the 40-week moving average.
Honda had been doing quite well. This week, it broke below the uptrend.
Even Ferrari looks like it wants to pitstop. It is still one of the strongest charts in the car business. The chart is stalling at the previous all time high, so it is always good to be cautious and watch to see if the stock stalls like BMWYY above.
In my opinion, it looks like a good time to let the "race to electric" recharge and let someone else hold the stocks.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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