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Monday, March 24, 2014

Daily update 3/24

Down side follow through from Friday's reversal from all time highs.  Here is the daily SPX chart.

The futures gapped up this morning, but sold off immediately.  The opening was strong once again as 67% of stocks were up on the day.  We ended the day 61% negative.  Clearly the resistance that has been a problem for bulls all month at these levels is still there.  SPX closed slightly below the uptrend line from the Feb. low.  Volume was elevated again today.  Lets zoom in to the SSO 60 minute chart.

SSO got a confirmed break of the 50 SMA this morning.  This afternoon we tested the FED day low and bounced.  The bounce fell a little short of the 50 before selling off into the close.  With the 50 already below the 100 SMA this looks like confirmation of a move down. 

The SPX daily chart looks like a textbook double top.  The key SPX level for that pattern is the last swing low at 1839.  That is below the key 1848-50 area we have been dealing with all year.  If we break 1839 then the next support is a trend line connecting the lows from June, Oct, and Feb.  That is a key trend line and if broken should usher in considerable selling.  On the upside the bulls have to get all key indexes into new high ground.  That is a feat they have not been able to do all year so far.


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