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Wednesday, August 19, 2015

Daily update 8/19 Intenisity picking up again

There was a significant surge in volume today. 

Quite the odd day.  SPX gapped down and traded below the lower trend line.  The selling suddenly stopped and a rally broke out.  The FED meeting minutes came out early and touched off a big spike which completely closed the big gap down.  Then the sellers took over once again.  Intraday volatility seems to be picking up.  The breadth was -73% indicating broad based selling.  New highs dropped way down to 33 from the 90s the last couple of days.  New lows spiked up to 283.  SPX closed below the 50 and 100 SMAs, but slightly above the 200.  We are still in the triangle for the moment, but there isn't much wiggle room left.  A decision is imminent.  The decision on the triangle may also end up being the deciding factor on the long narrow trading we have experienced this year. 

The futures have confirmed red price bars again.  Both indicators are negative.  Notice the ADX line is already turning up.  We are back below all key moving averages yet again. 

Both breadth indicators are negative.  The green/red price bar chart is negative.  SPX has a red price bar.  The way things have gone all year is that when everything gets into gear to go down the market bounces.  It may be different this time.  There are hardly any stocks left to hold the market up.  Should we break the bottom of the triangle 2040 is the first major support area. 

With all indications negative I am changing the bias on the short term trends down across the board.


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