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Friday, September 23, 2016

Daily udpate 9/23

Buyers remorse?

SPX reversed to close back below the 50 SMA.  Breadth was -66%.  New highs were down considerably to 80.  This is probably not good for bulls, but bears need to see downside follow through on Monday.

In yesterday's excitement the futures got above the 100 SMA.  However, they failed to stay there today.  They never confirmed the upside break so theoretically it was bearish to fall back below the 100.

The green count took a considerable hit all the way back to 50.  That is not particularly good.

The market may be rolling back over already, but we need to see downside follow through next week.  Despite yesterday's big gap up and really strong breadth SPX made its high in the morning and its low in the afternoon.  That happened again today and is clearly the dominant pattern of late.  That is a correction/bear market pattern.  Since the pattern showed up again right after the big FED induced move it suggests this market still wants to go down.  The bulls need to show up on Monday and keep the upside pressure going or we are likely to head for a retest of the recent low.

I think I forgot to mentioned the monthly doji in Aug.  Here is a look at the monthly chart.

A montly doji bar is pretty rare.  It shows indecision and after a big rally it could signify a top.  A monthly close below the Aug. low (2147) would be a bearish confirmation.

The market and sector status pages have been updated.  Have a great weekend.


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