Tuesday, October 23, 2012

Bellow uptrend line

The day is not over yet but it looks like SPX is moving bellow the last line of defense for bulls, the 4 months uptrend line.

On two hours chart the most significant technical event is that SMA 120 is pointing down now. When we had the whip-saw SMA 120 was rising.

Weekly chart shows a move bellow a flat SMA 50 and a SMA 200 around 1,380. Also notice that weekly DMI is barely positive right now. A weekly DMI turned negative will confirm that we are in the middle of a correction.

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