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Wednesday, September 26, 2012

Daily update 9/26

I want to apologize for not setting the short term trend to down in the market trend section yesterday.  I was late sitting down to do the daily update and quite frankly I forgot about it.  I will try not to let that happen again.

A little follow through selling this morning, but it did stabilize early in the day.  Here is the daily SPX chart.

SPX closed below its 18 SMA today.  This is often a place for a bounce.  Lets zoom in to the 60 minute SSO chart.

SSO is in its first support zone.  The sideways action is showing some support here.  We have the end of quarter coming up.  Will there be some of the often talked about window dressing?  This chart is set up for a bounce.

One more thing to look at is the breadth chart.

The 10 DMA section of the chart got a negative cross today.  The McClellan oscillator has been negative for a while.  It is now in over sold territory.  The circled area shows the oscillator was very strong at the high.  Most of the time the market will retest the high from such a strong condition.  Just be aware that the retest may end up with a lower high.

So the market has retraced all the gains from the big QE FED announcement.  We are in a slight short term  over sold condition within an uptrend.  It would be normal for the bulls to show up here.  If we continue down again tomorrow there should be good support at SPX 1420.   

Chart practice has been updated with MA the stock today.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.