The white line is the 100 SMA which was hit this morning and provided support for a bounce. There was a pretty good increase in volume today, but it is not clear exactly who won the day since price ended not far from the middle of the bar. The 10 DMA breadth chart that was positive yesterday has a solid negative crossover today. The bulls did not capitalize on that potential bullish setup. As you can see there is quite a bit of price action above the red line that marks the April low. That is all overhead resistance now. If this is going to be a successful test of the April low I believe we must rally tomorrow. Otherwise, the risk of a cascade down will increase dramatically. The market has tanked the last two years starting in May and everybody is aware of that. There has been no real panic selling as of yet, but SPX must get back above the April low pretty soon or that is likely to happen.
Bob
1 comment:
Great information, Bob. Much appreciated. Thanks for taking the time to share your knowledge.
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