Wednesday, November 7, 2012

Weekly DMI has turned negative

Day not over yet and bulls trying to contain the loss as I write this but one big indicator has turned negative this is a big deal. I am talking about weekly DMI. I don't know if it has anything to do with Obama being re-elected but market is plunging big time. It was in a correction mood anyway, as I mentioned in the previous posts.

Two support levels on daily chart were also broken, 1,408 and especially 1,400. Bulls may manage to push market above 1,400 by the end of the day.

Two hours chart only confirms what we already knew, that intermediate time frame is bearish. Note that SMA 120 is pointing down now.

After hours update

SPX did not manage to stay above the support around 1,400. Five points is not a big deal but bulls worked really hard this afternoon to defend 1,400 level.

SPX is slightly above the first obvious support level, SMA 200 but all other indexes, Dow, Russell 2000 and Nasdaq are already bellow SMA 200.

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