Today's selloff of the overall market was pretty severe...Today's bad news was about Portugal and Greece getting their credit ratings slashed by Standard and Poors...Plus a GS executive is being grilled by a Senate subcommittee...He's denying all wrong doing...
The $SPX closed below the middle BBand today and took out the previous level of support it had two Fridays ago when the news the SEC was accusing GS of fraud...I see the $SPX heading to the lower BBand at 1168 now...Closing below the intraday low set on the 19th is a breakdown of a double-top chart pattern...
Today it closed below the 15MA for the first time in since mid-February...That's very Bearish IMO...The CCI dropped below zero today, and STO is dropping hard and may blast down thru 50 if we see two more down days in a row...The MACD looks Bearish...Volume was very high on the selloff today...
Tomorrow should be another down day according to the shape of today's candlestick...The $SPX closed only two points above the intraday low...The canldestick is very tall and solid red...Expect a smaller red candle tomorrow, a smaller one the next day, maybe a hammer or a doji the following day...
If this was a stock, that's how it would usually go...Since it is an Index, it's a bit harder to predict what it will do over the next few days because of the massive amount of news it gets every week...There's lots of Earnings and Economic Reports to come out this week...
Overall, this chart just turned very Bearish in only one day...See what bad news can do?...
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