24 May 2013

FLAT is what we can describe todays move but not after a drop in the morning.  The price did not break yesterdays low on the SPX or the other indexes, but it did push lower on the QQQ.  This means more bearishness for the NASDAQ.  On a daily level, the bears should be happy.  the MACD crossed down and printed for the day and the downtrend of the STOCH. has fallen below overbought.  The only "Bullish" sentiment to take from this is that the price is still above the 20ma which is why we can't keep our guard down until we see a push below it.  The last time it was below was mid-april where it managed to put in a 3 day down trend before bottoming and pushing above the 20ma again.

The weekly is what we are most looking forward to as it prints for the end of week and putting in a bearish reversal candle.  The price also falls below the weekly BB and came out as a red candle.

We should try to watch Monday to see if we can continue this trend lower as our trend indicators are both pointing down and confirming.  Maybe its a way to keep everyone happy for the weekend.  Happy for bulls that prices stabilized, Happy for bears that the weekly and dailies both put in a topping candle among other bearish signals that printed this week.

The next support for SPX would be around the 1596 level where brief stops were made during the month of April. But the most important level to break is the 1540.

Mid-Term: DOWN (Confirmed)
Short-Term: DOWN

Take note that most of equities this week put in a reversal candle themselves.  I will update this weekend a chart of the %age of stock above the 200ma and look at the movements made this week.  This should give us a clue as to how strong the market is.