Many traders are believing the Dow Jones U.S. Internet Index ($DJUSNS) is dead money and for the past 18 months or so, that's been mostly true. The DJUSNS has been unable to sustain a move above 900, testing that level in March 2014, September 2014, March 2015 and April 2015 without any breakout success. While that certainly has left many traders frustrated, it would be unwise to give up on the group. In fact, a very bullish case can be made for internet stocks based on their long-term ascending triangle pattern, the breakout of which would likely send lots of technical traders scrambling to buy shares. A confirmed close above 900 would "measure" to 1075, which gets very exciting if you own shares in this group. Take a look at the pattern and its measurement below:
Stocks like Facebook (FB) and InterActiveCorp (IACI) are breaking out today to lead the charge.
Happy trading!
Tom
