Break down below 2800 and test of 200 DMA.
SPX opened below 2800 and mid day tested below the 200 SMA. However, there was no panic selling and a few dip buyers showed up. SPX ended the day 17 points off the low. Breadth was -65%. New highs dropped down to 73. New lows spiked up to 205. That is a new high number for this pullback.
The futures have not been this low since back in March. They show a break of the 200 SMA and then a rejection of that MA on the bounce attempt. That probably opens the door to more downside.
The red count was up a bit more, but remains below the oversold level. The intermediate indicator needs to get back above 50 before we can talk about this correction being over.
I am not hearing any fear or panic. I think I even heard people talking on CNBC about the lack of panic selling. That generally means there is more to go on the downside. The bulls may mount a bounce here off the 200 DMA, but they will have to show they are serious to make a convincing bottom. A bounce here to test 2800 from below would not be unusual. I think the lack of panic indicates there could be sellers still lurking on strength though. The 2750 and 2650 targets are waiting down below on further weakness.
Bob
Trend table status
Trend | SP-500 | R2000 | COMPX |
Primary | Up 7/31/20 | Up 1/29/21 | Up 5/29/20 |
Intermediate | Up 10/2/20 | Up 8/21/20 | Up 10/9/20 |
Sub-Intermediate | ? 2/22/21 | ? 2/18/21 | ? 2/22/21 |
Short term | Dn 2/22/21 | ? 2/18/21 | Dn 2/22/21 |
Don Worden of Worden Brothers (makers of Telechart software) used to keep a trend table before his health issues got in the way. I always found it useful. Mine is slightly different. Hopefully helpful. Up? or Dn? means loss of momentum. ? by itself means trend is neutral. ?+ or ?- means trend is neutral with bias of up(+) or down (-)

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