A flat day, as expected, with market waiting for Google and AMD to report their earnings this afternoon and GE, BAC tomorrow morning. SPX has touched SMA 120 in the morning for the first time since the beginning of this leg, in December. This is a serious warning for those trading based on intermediate time frame momentum but the most trusted signal is still EMA 25 crossing EMA 50.
SPX has a short term support at 1277, we need to watch this level but even more important is the support around SMA 20, 1273 today.
On daily chart I notice that SPX moved a little bit bellow the seven weeks uptrend line.
Dollar went up a little bit but it didn't manage to climb above SMA 70 on daily chart and we are still have the bearish EMA s crossing.
Gold and silver got crashed today but this didn't change the long termtrend that is bullish.
Tomorrow is going to give us a lot of clues about which direction the market wants to move. Earnings were not bad for neither GOOG nor AAPL the largest companies to report this week. If market continues to move down despite GOOG earnings that is going to be a sure sign that a correction is going to happen right now. If GOOG and AAPL can't move the market up nobody can do it. Just as a curiosity, last year the correction started on January 20! Last year we had bad news, right now the news are not so bad but after rallying 200 points many bulls need only an excuse to take some profit of the table.
Watch SMA 120 tomorrow (probably around 1274-1275) and more important watch the charts to see is EMA 25 is going to cross EMA 50 or not.
Have a nice trading day tomorrow.