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Tuesday, November 23, 2010

Tuesday, After the close!!!

Another one of those long-term charts that keeps a larger sell-off on the radar, the Summation Index is back to accelerating to the downside, and still has that same look as it did during the beginning stages of the last sell-off.
Here is the Daily chart of the Dollar, definitely the "Chart of the Day", with some important levels of support and resistance added. The Dollar did make $79.825 the high of the day, that is a large move over the last two days that opens the possibility that the Dollar is entering into a 3rd wave up. The first point of resistance is at $80.17 from a previous low and the biggie is the previous high of $83.635 made back on 8/24/2010 right at the 62% retrace level. The Dollar is trending up, and as long as it keeps printing higher highs, the trend will remain bullish, a break below the green trendline would be one sign the Dollar is getting weak and the uptrend could be in jeopardy.
This is one more of those longer-term charts I am referring too as I say, the longer-term picture supports a larger sell-off, something I am keeping on the radar. The indicators on the weekly SPX are rolling over into a sell and today the SPX closed underneath the 200 week MA which closed at 1189.77. The 20 week does provide support at 1137.70, but there are multiple points of other support on the daily chart before we can reach the 20 week MA.
An ugly day on the markets, which were pushed down as the Dollar soared today, the Russell did not suffer as much as the SPX, and was only down 1.01%. The SPX along with the Nasdaq got hammered with the SPX down 1.58%. Down volume, or sell volume accounted for 90.32% of the total volume with 1.02B shares traded on the NYSE. Seeing sell volume accounting for over 90% of the total volume is a bearish sign showing it was an across the board sell-off, which would make sense today because the Dollar seemed to be leading equities all day, making higher highs, before the SPX made lower lows.
The Russell chart still has a nice channel going with support from the lower line down at 708, and resistance up at the median line at 726. If and I say with a BIG IF the Head and Shoulders does work out, downside target is around the 664 level, which would make a nice looking a-b-c down, corrective zig-zag.

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