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Wednesday, August 28, 2013

Daily update 8/28

We got the high TRIN bounce mentioned yesterday as a possibility.  However, it was pretty feeble.  SPX ran up to the 1639 resistance area and found enough sellers to stop the bounce.  It rolled over and was headed down into the close.  Here is the daily SPX chart.

SPX ended the day below the 100 SMA for the second day in a row.  We still need a close below today's low to confirm the break of that MA.  Without that confirmation there is still the chance of a bounce from this MA.  If SPX can close back above the last swing low of 1639 the bulls might get emboldened.  That would form a potential short term double bottom.  If we continue down from here the odds should favor a trip to the 200 SMA.  That is right in the vicinity of the June low.  There might be some support from the round 1600 number.  However, I don't see anything in the chart to suggest that will be strong.  We smashed right through it back in June.

Tomorrow might tell us whether we are going to bounce from the 100 SMA or break down and head to the 200.  Breaking the 100 sometimes causes an acceleration down.  Who will show up, the bulls or the bears? 

Chart practice has been updated with WYNN the stock today.


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