Market Indexes: Major U.S. Equity Futures closed slightly lower
Today, overall, was a "lower low, lower close" day, as shown by the SP500 Daily chart below. The major purpose of today from a technical stand point was likely to close the gap left open at the 2525 level from 12 Jul, shown in the black circle.
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| S&P500 Index - Daily Chart |
As long as price keeps making lower low and / or lower close days, it is best to assume the trend direction is still down. While an upward correction of the down trend could start anytime, look at how many gaps there are open on the chart between 18 May and 29 Jun. They are at risk of filling.
A couple of other things to note. The EMA-13 (green line) is at risk of a bearish cross under the EMA-34 (blue line) in the next couple of days, and the MACD histogram (similar in some ways to the Elliott Oscillator) is making new lows, while the MACD line has crossed below zero for the first time in more than three months.
Keep life simple, for now. I am. It's time to start the weekend, and then to prepare for the solar event of the season!
Have a good start to your evening.
TraderJoe
Thank you for your all your help! I love your post here!
ReplyDeleteOn daily chart I notice S&P closed outside the lower bollinger band. Also that was a .786 retrace on the 1 hour chart, (triangle) we'll see. Dow on the other hand hasn't met the lower bollinger yet. Also looking at the AC oscillator, on a closing basis. August 8th closed lower on the 4th AC bar. But the high was taken out. It tells me the Dow is weaker than S&P. I'd like to see 5 waves on the Dow and a x wave on the S&P. Come on out the Charleston SC and join me for the eclipse, I'll buy dinner :)
Nice offer. Thanks!
DeleteThanks TJ always,
ReplyDeleteany update on USD whenever you have time
Likely in wave a:3 of 4, of 5 waves down from the Dec - Jan high. There have been three waves up since the Aug 2, low. The b:3 wave, down, has started and must at least retrace 90% of the a:3 wave, but it could easily make a new low. Then, there should be an upward retrace to at least 38% x wave 3. Hope this helps.
Deletethanks
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