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Wednesday, December 29, 2010
Wednesday, After the Close!!!
BKX has broken below the trendline of support and all the indicators are now on a sell. There was major divergences going on with the MACD and RSI over the last couple of months. First downside level of support is at the previous low of 51.50.
Add another bearish rising wedge to the list, the daily Keltner channels on the SPX have really tightened up in the last month, not sure of what to make of it because I do not spend much time playing with them. If they behave like the Bollinger bands do, this usually would mean a large move on the immediate horizon.
This does not look like much at first glace, but is could be a very important early sign that the SPX is rolling over now, and getting close to breaking thru short-term support and making lower lows.
Really an interesting close, the SPX lost the majority of today's gains in the last hour of trading, closing up on the day only 0.10%. The biggest development during that last hour was how the SPX impulsed down breaking the black median channel line along the way. This really sets up tomorrows open as important for the bulls, because if this sell-off continues much more the SPX will start breaking thru support that has held for days now. First up is the previous minor low of 1251.48, breaking below here would be the SPX's first lower low.
Breadth for the day closed at 1.76:1, advancers and the NYSE had another light volume day with only 518M shares traded.
For the bears, tomorrow needs to have follow-thru to today's sell-off at the close, with an increase in Breadth and volume. The Trend Finder II already signaled sells on the Russell and the Nasdaq, a sell-off tomorrow in the SPX would most likely trigger a sell signal for the SPX. Just for the record, at the close there was a daily sell signal on the es-minis, I usually ignore signals on the mini's because of light volume making it easier to manipulate. If we do start impulsing down I will start posting all the support levels and targets on the way down, something I have not done much of lately because the SPX has held short-term support for the last few weeks.
The Trend Finder II is updated with only one change today, a buy signal on Silver.