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.
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