12 June 2014

The intra-day chart provided the acceleration down by staying relatively deep in oversold territory.  We remain here as the bell rings close.  A pause has established right at the 60min charts 75ma.  I have drawn a parallel channel to see if we could map out a possible support if the down-trend is still a corrective move.  A possible 4th wave could be occurring and could draw down to or near the 1910 - 1915 area.  It is also possible that we support near the 75ma we are currently on now and run up to new highs forming another diagonal wedge (possibly to 1987?).  Oh the possibilities...  What we need to take from this is that our ST has changed direction yesterday and in doing so gives us a CIT conviction.  We are out of the overbought condition on a short-term basis, but a formation of a negative divergence still lurks in the back, and we should watch for this.  Therefore we should look at the intra-day again to show us the way. 

MT: UP
ST: DOWN
PA: NA

Signals remain mixed.  Trading such mix signals are not often the best course to take but if one must trade then a small position should be initiated and nothing more.