This market is in serious technical trouble right now. IIX 484 down 10 and BKX at 794 down 9 and NDX 3,616 down 64 are breaking and masking major underlying weakness. This market is a house of cards... We need a bounce or else...
Please look closely at BKX and IIX and NDX supports posted in archives:
...<What does this small shread of evidence mean? We are within 2-3 days before a near term bottom and another smart rally is just around the corner if::
1) IIX does not have 2 closes below its 25 and 200 day MA (IIX 507-510). IIX closed at IIX 515.
2) DOW does not have 2 closes below DOW 10,605 with the second close below 10,336. One close below DOW 10,336 and all bets are off for any rally and this pre-requisite supercedes all other conditions. DOW closed at DOW 10,684.77
3)BKX has 2 closes below BKX 800 (50 day MA) with the second close below BKX 782 (25 day MA). BKX closed at BKX 819.68.
4)UTIL has 2 closes below UTIL 322 (25 day MA). UTIL closed at UTIL 328.66.
5) NDX breaks 50 day MA NDX 3,660 with a close below NDX 3,620 on 1 close (3,620 gives us elasticity below the stops getting run out on a close below the 50 day MA).Also above critical support NDX 3,580. We closed at NDX 3,790.62.
In short, the market is looking to put in a bottom most likely in the next two days. And unless the DOW diamond top comes into play and we begin a capitulation process below DOW 10,336 along with other above support parameters breaking - WE ARE GOING TO RALLY HARD INTO THE END OF JULY.>...
While the DOW is hanging by a thread up 6 at 10,592 other 3 indices show major selling distribution.
Best Regards, J.T. |
