Nasty doings, today. The SP 500 could not take out resistance levels
above 1120 during this recent rally. The market started to break
yesterday and blew out today with stern short term warnings. The
uptrend line off the the early July lows was broken and the standard
MACD format turned down. In addition, the "500" blew through
supportive 10 and 25 day moving averages.
The market dropped to a slightly oversold condition and a break
below 1070 -1075 on the "500" over the next 3-6 trading days would
pretty much scuttle an extension of the rally as momentum would
be unusually low to expect continuation.
SP 500 chart.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!