This is the second day on the downside in a row. The trading day is not over but if remains around 1,433 like it is right now I can say the intermediate time frame has turned slightly bearish. SPX moved bellow SMA 120 for the first time since July. also EMAs are giving a little bit of a bearish crossing. It may become more obvious tomorrow if market continues to drop or even if stays flat.
Daily chart shows that the 4 months rally uptrend line is around 1,425 and coincidently SMA 50 is also at the same level. SMA 200 is somewhere around 1,370 but daily DMI is almost turning negative for the first time since the end of July.
On weekly chart I told you in previous posts that I keep an eye on the previous low, 1,440. Well, the market moved bellow this level which I consider a pretty bearish sign (one can argue that the week is not over and for the remaining two trading days bulls may push SPX again above 1,440).
I think there is a pretty good chance that we are going to see a decent correction from here.
I may come back with details after the closing bell if anything dramatic happens meantime.
All the best!
babaro
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