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Tuesday, September 22, 2015

Daily update 9/22


Nothing like a little overnight sell off in Europe to send the futures down.  However, at the end of the day they closed where they opened the regular session.  I guess most people weren't motivated to sell into the weakness.  The breadth was -77% about inline with the move.  The new highs dropped way down to 4 while new lows popped up to 214.  That is the most new lows since the 8/25 low close of the mini crash.  The internals suggest we are indeed on the way to a retest of the low.

The futures seemed to be finding support at the lower Keltner channel.  That might be enough to cause a bounce.  Both indicators have negative crossovers.  We have a confirmed down move now.

The red bars crossed above the 50 threshold today.  That should confirm the bears are back in control. 

SPX closed below the lower trend line and below the 20 SMA.  The futures chart confirms the bears in control along with the green/red bar chart.  That is a lot of negativity for the bulls to overcome.  However, it is tough to say how a retest will play out.  These mini crashes can leave the market pretty choppy.  There could be a few ups and downs on the way to the Aug. low.  Of course we could just accelerate down again.  There are historical instances both ways.  If things continue to fall apart overseas it is likely to be the more straight down affair.

The short term trends are now down across the board.


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