



The count on the chart above is one of the best ways I have found to label the waves if this sell-off follows through making more lower lows. Yesterday, it looked like the sell-off was more corrective, rather then impulsive making a top of some sort questionable, but that changed mid-day today to where now it looks much more impulsive.
The next question will be if the rally from 1044 could of only been the 1st wave up, and now we are in the 2nd wave down, or if the rally was an "A" wave, and now we are in wave "B", both with higher highs in the near-term future or, if a major sell-off is in the cards. It is best to wait and see how it plays out before getting too excited about a major sell-off in the works.
Breadth for the day was very impressive ending at 5.20:1, decliners, also the highest reading for the bears since the early part of February, on heavy sell volume.
The levels of support, are 1175.12, which would be making a major lower low and changing the trend to DOWN, and also in that range would be trendline support that goes all the way back to 666, this is an important number for the bulls to hold. We still need follow-through to confirm this downtrend!!!!
As a side note, the SPX closed back inside the Bollinger bands by the close, after breaking and recapturing them twice today.
***I plan on adding more charts later today when Stockcharts gets their daily charts updated, there should be some interesting ones that are worth sharing after what happened today.
9:04, The VIX broke out and made a higher high, but in doing so left a series of unfilled gaps below which will be wanting to get filled.
Click here for a live, and update chart!!!
8:44, The SPX is now sitting on short-term trendline support at 1191.36, you can also see the levels on this chart where we start making lower lows starting at 1190.19.
Click here for a live, and updated chart!!!
8:39, updated Bollinger band chart, I post earlier, the SPX did manage to recapture the bands after that gap down open, but then exploded to the downside breaking out of the bands once again.
7:29, The number of stocks that are above their 50 day MA are starting to drop now, or roll over from the highs a week ago, this is a sign that this rally is finally losing momentum.
Click here for a live, and updated chart!!!
7:07, Here is a Fib fan for the rally off of the 1044 lows, the short-term Fib fan chart I normally post does not have enough data yet to set any new fans, since the bullish fan was broke to the downside mid-day yesterday.
Click here for a live, and updated chart!!!
6:40, The gap down open also broke below the Bollinger bands, a move that usually will reverse itself to recapture the bands


8:44, The SPX is now sitting on short-term trendline support at 1191.36, you can also see the levels on this chart where we start making lower lows starting at 1190.19.

8:39, updated Bollinger band chart, I post earlier, the SPX did manage to recapture the bands after that gap down open, but then exploded to the downside breaking out of the bands once again.


7:07, Here is a Fib fan for the rally off of the 1044 lows, the short-term Fib fan chart I normally post does not have enough data yet to set any new fans, since the bullish fan was broke to the downside mid-day yesterday.

6:40, The gap down open also broke below the Bollinger bands, a move that usually will reverse itself to recapture the bands
This blog is very good, thanks for your analysis.
ReplyDeleteI make a comment
The SP is still positive trend in the short term and on average even more.
Therefore these values is still too early for a change of trend short.
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