The bears emerged victorious after another ugly week on Wall Street. A closer look beneath the surface showed a lot of damage occurred. In last week’s report, we mentioned that the tape was split and we were seeing a few important areas begin to roll over. Well, many of those important areas broke down leaving fewer and fewer areas in “good” technical shape. The areas that concern us are…
Once again, the bulls showed up and defended the 50 DMA line for the Dow Industrials and S&P 500 right after several other – important – areas broke below key areas of support this morning. Right after the open, we saw…
The bulls showed up and defended the 50 DMA line for the S&P 500 and several important areas of the market. Until the S&P 500 and Dow Jones Industrial Average break below their respective 50 DMA lines, the buy the dip crowd remains in control. Going forward, we want to see…
Intermediate and long term there are one of two possible scenarios that may unfold: A. The major indices are building a long 1 year base and a breakout above resistance (2134 in the S&P 500). If that occurs, that will likely be bullish and trigger a new leg higher. B. This is one big top after a 7 year bull market and support breaks (1810-1820 in the S&P 500) and we enter a new bear market. We still think…