*** TA Update (intraday):
The Spx broke sharply below support near 945, and the internals are extremely negative this morning, and unless the market internals improve greatly at the close, the Summation will be heading back down again, which will disappoint and discourage bulls/longs. Many pros look at stochastics, MACDs and McOsi/Summations as well as chart patterns and support/resistance levels.
The market is trying to form a short-intermediate term bottom but there is a lack of buying pressure as evidenced by the lack of heavy volume on Monday's huge rally day. Add to that the lack of heavy volume during that quasi-capitulation day recently, and the market is making it very hard for bulls to find any positive signals that work.
Today the close is more important than usual as the type of close will determine several signals, and barring a fantastic bullish intra-day reversal, those signals will be quite bearish for the ST, and could portend a test of Spx 865 or 839, the prior recent low. If 839 doesn't hold support, then another leg down to 783 ('02 closing low) or 768 ('02 intra-day low) is possible.
Internals have to greatly improve during the day for a bullish reversal to occur today, and while it is not impossible, the odds seem against it.
Right now, at 10:43 EST, the market is trying to hold up or rally from its lows, while the internals are barely improved and still very negative.
If the mkt fails to rally strongly in the next couple of hours, the risk of a further selloff increases, where the Dow could be down more than 400 or 500 points.
Now at 10:50 the Dow has rallied to -250 points from earlier being down over 400 points. We shall see if this rally fails or succeeds by the close. The Nas is stronger than the Spx and Dow, due to it having been weaker in the past couple of days and the AAPL earnings rept.
regards,
drbob |
