I would say that qualifies as a break of the lower trend line. We also closed below the neck of the inverse head and shoulder pattern everybody was talking about. We are still above the 18 SMA. Overall this makes the short term trend neutral now. Here is a look at the 195 min. SPX chart.
In looking at these price bars I noticed there was some pretty clear resistance that was below the neck line.
We stopped in that area today. There could be some support in here.
Here is a look at the current breadth charts.
Normally the market will retest or at least get pretty close to a high with this strong of breadth readings. When it does not, it means the news flow has really changed peoples minds and is a significant event. Until these breadth charts get negative and the daily chart gets red price bars it is not safe to pronounce the rally over. The bulls can show up with surprising force sometimes.
We had an extreme closing trin reading of 3.5. This usually leads to a bounce the next morning.
Bob
3 comments:
Bob, I'm trying to figure out the MAs that you're using (Simple vs Exponential). Have you already given out this info?
And I trying to figure which MA is the red line, the yellow line and the sky blue line, lol?
I have talked about most of them in posts. I will update the price bar page with a description of what all is on the charts as soon as I can.
Bob
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