When breadth indicators get oversold, like they were Wednesday, and the market doesn't bounce, then this is new behavior and a possible tell going forward. P/C Ratio closed at .70 today so everyone is expecting a bounce for tomorrow. Maybe they'll get it but it would have been better had the P/C Ratio closed at 1.10 or higher. Always a concern when everyone's on the same side of the boat.
On the daily chart, the 9EMA has now crossed decisively down through the 20MA in the first stage of fresh 'sell/avoid signal.
DI lines had bearish cross Wednesday and because $SPX closed below Wednesday's low, then we have a confirmed 'sell/avoid' signal using Wilder's ADX.
The mid-line support on the monthly $SPX chart I put up over the weekend is in the area of the 50MA on the daily chart and also in the area of the next major support level at 1746.20. Don't know if we'll even get there but if we do I wouldn't want to see this fairly large support area fail to hold.
Market isn't likely to go straight down. Never does. But I'd be cautious placing too much confidence in a snap-back rally which may prove to be a suckers rally instead.
GL
On the daily chart, the 9EMA has now crossed decisively down through the 20MA in the first stage of fresh 'sell/avoid signal.
DI lines had bearish cross Wednesday and because $SPX closed below Wednesday's low, then we have a confirmed 'sell/avoid' signal using Wilder's ADX.
The mid-line support on the monthly $SPX chart I put up over the weekend is in the area of the 50MA on the daily chart and also in the area of the next major support level at 1746.20. Don't know if we'll even get there but if we do I wouldn't want to see this fairly large support area fail to hold.
Market isn't likely to go straight down. Never does. But I'd be cautious placing too much confidence in a snap-back rally which may prove to be a suckers rally instead.
GL