2 Jan 2015 - How Does It Go?

What was it again...  "How the first day or week goes will dictate how the rest of the year will look"?  I cant say that this is a solid confirmation, but it's not the best way to start 2015 off on a sour note.  Todays sell-off was greater in volume than the last day of 2014 trading day.  This can't be relied upon though due to the fact that many traders or investors are just making their way back.  All I can see at this point is that the MACD that I was speaking about the past few days is now closer to crossing down in our stage one bear mode... Then a follow through below the zero line would definitely flash that sign up in bright colours.  The ST has also turned "DOWN"..

One bright side (not much of it if you ask me) is that the daily bar formed a reversal candle with price staying above the 20 day MA.  A break of this would push us back down to the 2000 level in the SPX.  So watch those indicators I have been mentioning about.

MT: UP
ST: DOWN
PA: NA

The intra-day charts seem to be rallying and if you are a day trader you should watch the intra-day charts to see how long the bullishness lasts.  The question to ask is if that bullishness can force our ST to turn back up signalling a false signal.  Of course no signal is ever false, just short-lived.

On an EW level, looks as if there is a 5 wave down from the highs so to confirm this at the least would have the next pattern form as 3 wave structures.