Hello Everyone,
Note the new trades on the SPY and ES Systems
As far as the market, strong sell off today with the SPX losing -90 points!
Last Tuesday the SPX tagged the 200 day MA on an intra day basis (as well as the weekly ATR average true range) and logically reversed off of those technical areas of significance (congrats if you took a short there). It was to be expected that price would get a first rejection off the 200 day MA even under a more bullish scenario. Last week we had other various warning signals from the VIX indicator Demark 9 on Thursday, as well as the uncorrelation spike, and divergences on the charts. Last Friday the selling began, which resulted in a clear break of the uptrend channels that we've been showing for the past month; this break of the channel on Friday was technically very important and a shot across the bow. Then today we got a large gap down trend follow through sell off day. On the weekend we said that Friday would be an important day.
Short-term I'm monitoring a couple symmetry moves, however I favor a rally from here to form a lower high. The SPX has not broken the larger uptrend symmetry yet i.e. 197 points vs 207 points.
Short-term the NYMO has closed below its lower Bollinger Bands for 4 consecutive days, which is quite stretched. The NAMO has closed below its lower Bollinger Bands for 2 consecutive days.
Matt
