Futures were 8 points up this morning but SPX ended 16 points lower today. This is the second reversal day in less than a week. Obviously this is not bullish at all but in all fairness, bulls did a pretty good job last week and they still have a chance to turn the trend in their favor on intermediate time frame. Looking at the hourly chart please note that we still have a bullish EMAs crossing and SPX did not plunge bellow SMA 120. Actually SMA 120 was challenged twice in the last 3 trading days but it did hold nicely.
Overall market remains bearish with weekly and daily DMI still in red. Daily DMI doesn't look that bad but weekly DMI is deeply in red. SPX didn't manage to make a higher high on daily chart. It pushed above 1,332 in the morning but it didn't hold.
However, to cheer the bulls a little bit, weekly chart shows a clear higher high. It may also transform in a "diamond bottom" over time, a bullish pattern by all means.
Metals and mining stocks were hammered today with X and WLT losing more than 6% and AKS not less than 14%. I like these stocks because they trend nicely either up or down.
No comments:
Post a Comment
Thank you for your feed-back