SPX closed back below the 50 SMA. It was still above yesterday's low and above the 6 SMA. There was a lot of volume on the sell off like it was news generated. I don't know if it was or not. Overall volume was light today. Here is the SPY 60 minute chart.
SPY found support right at the hourly 50 SMA. It held that low for the entire last 30 minutes of trading. Do the bulls come back and retake the daily 50 on SPX or do the bears take control and break SPY down below the hourly 50? I think we will find out pretty early in the morning.
If that is all the bounce the bulls can muster this market is in big trouble. If it follows through tomorrow on the downside it seems unlikely the recent lows will hold. We worked off the oversold condition. A break down would be a good sign the 8/15 big gap down was really a break away gap. With the intermediate trend down already the market could head to the 200 SMA pretty quickly. If the bulls show up the target is still the daily 18 SMA.
Chart practice has been updated with MNST the stock today.
http://traderbob58-chart-practice.blogspot.com/
Bob
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