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

To: Johnny Canuck who wrote (59555)	8/2/2024 1:45:08 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69808

Index Update SP500 sold off aggressive on heavy volume to close just at the 50 day EMA. Tomorrow is important as a break of the 50 day EMA sets up an intermediate sell signal. The day range was not out of the normal so the selling appears to be orderly, but the heavy volume indicates the institutions are involved. DOW also seeing aggressive selling on heavy volume, but the 1 percent move is not unusual. The DOW has moved up so fast recently it has a ways to go before the 50 day MA is tested. DOW transports on verge of breaking the sideways consolidation pattern of the last few month. Again it looks like the transports confirmed potential weakness in the DOW if the sell off continues. It did not set a new high after the DOW did. DOW theory still works. DOW utilities hitting new 52 week high. Lower bond rates being confirmed in the mind of traders. Also might be a flight to safety in a volatile market. Aggressive move in TLT also confirming shift in the opinion of traders that the rate cut is a done deal. USD exchange rate stable so it is not a geopolitical risk effect on the markets. COMPQ tested the 100 SMA and bounced.The volume has been heavy and accelerating the last few days. so the institutions are setting the tone for the moved. COMPQ had a unusual 3 percent day yesterday, something we do not normally see. The high degree of volatility is usually a sign of an intermediate top. Watch this index closely. It probably will lead the market down given that it lead the market up and had the highest gains on the year. 100 day MA break would have a lot of institutional traders shifting to sell mentality on further bad news. Given the election is coming up soon they would start to sell anyway to lock in gains for the year. yw Massive dump on Russell 2000 after setting a 52 week high. A massive move to a risk off mode. It needs to hold 210 over the next few days or the major of traders will move the sidelines. Given the high volume a lot of large institutions exited today. Look for more accelerated volume to indicate more selling. Financial pulled back from the old 52 week high level. Nothing to work about yet, just some profit taking for now. If it breaks down more then it would indicate something is wrong with the economy. So for the employment data indicating what would be expected in front of a rate cut. Something has to be on the verge of breaking before it the Fed cuts. The question is "too little, too late" to avoid a deep recession? Another down day would break the modest, short term up trend in energy. It has been going sideways for most of the last few months. A recession would reduce demand. No even AI energy demand would fix that. Gold could not set a new 52 week high but it indicates as risk off trade for now???? Consumer discretionary also piulling back and testing a key area.