After jumping almost 20 points up SPX experienced a nasty reversal plunging no less than 32 points before recovering a little bit at the end of the day. Reversal days of this magnitude are bad omens especially at the tops. One may argue that we are already 80 points bellow the top but I warn you to be very careful if you are still long.
Market is now very close to the "death cross", SMA 50 crossing SMA 200 from above.
If market goes bellow the previous low, 1250, we are going to have a triple top. The last time we had a triple top after a huge bull market rally was ... in October 2007.
As I mentioned two days ago, according to my timing indicators a new bear market is going to be official when EMA 20 is going to cross EMA 40 on weekly chart and price is going to slip bellow SMA 75.
While waiting for the debt ceiling debate to be over market received two bad news: the GDP was revised lower and bad ISM data, the reason market suffered a reversal yesterday.
Market is now very close to the "death cross", SMA 50 crossing SMA 200 from above.
If market goes bellow the previous low, 1250, we are going to have a triple top. The last time we had a triple top after a huge bull market rally was ... in October 2007.
As I mentioned two days ago, according to my timing indicators a new bear market is going to be official when EMA 20 is going to cross EMA 40 on weekly chart and price is going to slip bellow SMA 75.
While waiting for the debt ceiling debate to be over market received two bad news: the GDP was revised lower and bad ISM data, the reason market suffered a reversal yesterday.
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