Daily update 4/17

The bears did indeed show up today.  Here is the daily SPX chart.

SPX closed just slightly below Monday's low.  It came within 1.5 points of its 50 SMA before bouncing in the afternoon.  It is below the trend line where I have drawn it, but it could be drawn slightly different where price is still above it.  Trend bias is still up on the daily chart.  Lets zoom in to the SSO 195 minute chart.

The trend bias is now negative as it flipped on the first bar today.  However, price did not close lower on the second bar so it is not really confirmed yet.  Notice price held the first green support line today.  Volume was pretty high on the bounce bar and that was also true for SPY.  Is that a setup for a bounce tomorrow morning?  Unless the futures are down in the morning I think that will be the case.  However, there is a problem now for bulls.  Check out the new high/low chart.

There were significantly more new lows then new highs today.  This greatly increases the odds we have started a correction of some kind and not just a 3-5 day pullback.  The bias on the daily chart is still up so the bulls may try again to rescue the market, but I think there is enough technical damage now that it will be a losing battle until we see considerably lower prices then here.  That chart pattern is screaming top and now the internals seem to be confirming it.

Chart practice has been updated with MOS the stock tonight.
http://traderbob58-chart-practice.blogspot.com/

Bob