The action so far this week has turned the four month rally more vulnerable. SPX Chart
Specifically, the 40 day RSI is wavering again toward down and my extended time MACD
has turned negative for the first time since the rally commenced. The SPX has dropped
below its 25 day m/a and a shaky 10 day m/a is hovering just above the 25 day. The SPX
has survived breaks of the 25 day m/a during the rally, but rescues have come fast. We'll
see. In the meantime, with the MACD turning negative and the 10 day m/a off cue, traders
need to summon up extra focus.
- 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 !!!