Monday, April 9, 2012

Bearish morning

Very bearish morning with SPX going down no less than 17 points at the moment. For the second time we have a bearish EMAs crossing and SPX bellow SMA 120. Last year at this time we had SPX going down almost 100 points two times in a row before market went down for good.



Please note that daily DMI has turned negative but weekly DMI is still positive. The long term remains bullish despite being bearish on shorter time frames. Also market slipped bellow the four months uptrend line.



4 pm update

Bulls tried something in the afternoon but they gave up by the end of the day leaving SPX 15 points down, close to the opening level.

Today's action looks more bearish than a month ago when we had a whip-saw. The drop was due to the not so good job data on Friday but market had only today the chance to react. On Friday all international markets were on red but today Europe end it mixed. A flat day or one on the downside tomorrow is going to give more confidence to the bears. What bears don't want to see is market jumping up tomorrow and recovering most of the today's lose like it did happen a month ago.

Take care!

babaro22

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