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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47923)	5/16/2012 8:44:10 PM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69914

SP500 broke a major support level at 1350 on Monday and confirmed yesterday. We should a bit of a bounce over the next 2 days, but the index is not on a confirmed sell signa. It need to clear 1425 to negate that signal. There is a possibility of the index testing the 1250 support level below. Same comment on the DOW. I expect a short term bounce over the next 2 days, but the DOW is on a sell signal. Interesting observation on the DOW is it is barely triggering a sell signal. I expect the DOW to rally first on any counter rally as it is showing the most strength now. The DOW transports are actually showing more strength than I would expect considering the negative moods from the analysts. It has is on a neutral signal and the index has entered a consolidation sideways pattern. Important point, strong or stable transporation demand equates to stable oil and gas prices. Strong sell signal on the COMPQ. I expect a bounce in the next day or so. The index could correct another 10%. Financials on a sell signal. It could bounce in this area as there is not support at the level. This is day 3 of the sell off so I would expect a counter rally in the next 2 days. The accelerated volume into the sell off indicates any counter rally would be sold. Gold still on a sell signal. It barely avoided breaking the low established in December of last year. A break that level would lead to accelerated selling. Again the accelerated volumed is a negative. This is day 3 of the sell off so I would expect a counter rally over the next 2 days. I expect any counter rally would be sold. Energy is about to break a major support level. Expect accelerated selling when and if that happens. In the short term this is day 5 of the sell off. I would expect a strong counter rally over the next 2 days. It will not be enough to negate the sell signal. This kind of damage takes weeks if not months to repair as the psychology of traders is severely damaged right now. They won't want to throw good money after bad. Russell 2000 generated a sell signal today as it broke a major support level 2 days and finally confirmed it today. Gas continues to rally. If it can clear the $2.65-$2.70 level it would have broken a key technical level. Volume has to accelerate more on this move up to confirm the move.