Breakdowns in price versus moving averages (both SPX and Nasdaq have fallen below their respective 200-day moving averages) as well as weakeness in the internal strength gauges (particularly a setback in the McClellan Oscillator, which gave a bullish reading last week) have damaged the market rebound from early June lows.
We are less confident that the SPX will be able to retrace 50% of its decline from the April highs (to the 1130 area) and will set tight trailing stops on long positions, hold off from adding longs unless a convincing resumption of the rebound occurs, and gradually add short positions.
Click here for the latest StockCharts.com Market Tour.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment