Flat day

Bulls had a small attempt to do something in the morning but market closed virtually unchanged. Price is far away from both EMAs and 5 days SMA. This is a normal behavior when trends change but we should expect price to come closer to EMAs in the following days. Later on price is going to cross both EMAs and we will see a few attempts to climb above (by then) decreasing 5 days SMA but this moving average should provide a good resistance level. As long as price is going to stay bellow 5 days SMA the downtrend is going to be intact.

Daily DMI is even more bearish than yesterday and we should keep a close eye on weekly DMI that is still green. Somehow I don't expect this downtrend to last too long but this is just a speculation. I say this because bulls fought a lot to push SPX above SMA200 and to turn the long term momentum in their favor (as evidenced by the weekly DMI) and I don't see giving up their long term position so easily. 1130 is a level where we should expect a big fight. There we can find SMA200. Also, if you look at yesterday's post 1130 is a price where we saw a lot of volume in the past 6 months. Where is the market going to find support remains to be seen, we can speculate ad nauseam. Meantime we should keep an eye on our timing indicators, EMAs crossing and 5 days SMA.

All the best!

babaro