SPX had a LH and HL that is an inside day and normally should continue with the trend from day before which was bad day with SPX down 14 points. Today's range was only 10 points. But here is what got me all excited SPX closed very close to the low of the day. This means we should have an up day tomorrow or at least intra day we should have a rally. That would be cool because I plan to short if we have a 10 point SPX rally. All indices and ETFs also had an inside day and closed at or near the low of the day. The rally from this morning was over by 9 a.m. and we churned and little after 10 a.m. the decline got a little acceleration and we closed not far from the lows
The chart on the left is SPX daily with Gann angles. I was surprised when I found out a few days ago the 1039 bottom was actually on the 1x1 support angle. This is an important line for Gannies should this break we will (no could or should) have serious problems in the markets. I have also marked the 22 day mvg. avg. This mvg. avg. has been very helpful in the past. I plan to watch it closely. Charts stood still today except there was deterioration in the indicators. e.g. Magellan summation index took a major slide there was easing on RSI to 56 from 79. These are not good news. Many will reject these as just easing the oversold condition but there is no evidence to that. I plan on keeping an eye on everything
The chart on the right is my accordion chart and we moved one more parallel step down. The bottom line is we are having a decline. Nothing goes on for ever. Everything moves up and down. Straight downs or ups are rarity. This is options week. I wouldn't be surprised if we have a big plus day just to shake the puts. I am bearish and look for opportunities to short.
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