S&P500 loses the daily uptrend for the first time in three month
In a significant development in the overall market today, the S&P500 lost its daily uptrend for the first time in three months with the loss of 289.41. Yesterday rejected from the upper bollinger band, only to find support on the lower bollinger band today.
We've seen bearish divergence on the MACD and RSI developing since August, and what we see now are those bearish clues finally playing out.
Losing the daily uptrend signals we're now looking for healthy weekly consolidation and anything above 286.71 would be a higher low on the weekly chart, keeping the weekly uptrend intact. We did come within $1 of breaking that support today, but an hourly oversold bounce this afternoon kept that level for now.
This hourly bounce has been great enough that we can expect to see a higher low relative to the low of the day 287.66, and we will watch the size of the pullback to see if this bounce will see continuation or if we are likely to form a tightening range before seeing potential continuation to the downside.
Be aware there is market correlation between the mj sector, and every sector, with the S&P500. It's often said that high tides raise all boats; likewise, low tides can beach all ships.
Daily range: 287.66 - 293.21
Key weekly support: 286.71
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.
We've seen bearish divergence on the MACD and RSI developing since August, and what we see now are those bearish clues finally playing out.
Losing the daily uptrend signals we're now looking for healthy weekly consolidation and anything above 286.71 would be a higher low on the weekly chart, keeping the weekly uptrend intact. We did come within $1 of breaking that support today, but an hourly oversold bounce this afternoon kept that level for now.
This hourly bounce has been great enough that we can expect to see a higher low relative to the low of the day 287.66, and we will watch the size of the pullback to see if this bounce will see continuation or if we are likely to form a tightening range before seeing potential continuation to the downside.
Be aware there is market correlation between the mj sector, and every sector, with the S&P500. It's often said that high tides raise all boats; likewise, low tides can beach all ships.
Daily range: 287.66 - 293.21
Key weekly support: 286.71
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.