4 Jan 2015 - Continuing Where It Left Off

The last trading day of 2015 we discussed the possible outcome today would have due to the ST and the PA trending in the same direction with a year ending Bearish Sentiment.  Today's action did not disappoint.  While the last minute rally to the close was impressive, the ST is still pointing down.

The SPX has on a daily scale made a series of lower lows and lower highs.  This is trending bearishly... So, one needs to be planning for continued trend lower, and protect gains made last year, as the year, month, and weekly (Long-Term) signals has started out in the red.  Today's low has also hit our daily Gann angle support.  This angle should be observed for any break with a possible support at 1960 or depending on momentum would just push prices to the 1911 lower BB line support on the weekly chart.

The only signal flashing a price acceleration down is at the intra-day level.  So a prolonged position in an OS situation would put the longer term charts in a bearish mode and perhaps push them into an acceleration trigger of their own and this could be huge complication to the downside.

SEN: Bearish
ST: DOWN
PA: DOWN