Bit of a break there. The markets plunged -450pts on DJI between friday and monday to recover some ground +123.49 today. Bearish outlook is reinforced at the moment with major indices below their 200 SMA
Levels vs SMA(200)
DJI 9939.98 vs 10304.65
SPX 1062.00 vs 1107.16
NASD 2170.57 vs 2236.09
RUT 617 vs 632.76
The Russell 2000 small cap index is the latest to turn bearish (below the 200SMA on the daily close). This is indicative of the broader trend.
Looking at the charts, we have to look at an important support level of the Feb 5, 2010 low.
Levels Feb 5 vs Current
DJI 9835.09 + (but has moved lower on last two days)
SPX 1044.50 + (1042.17 today's low)
NASD 2100.17 + (not breached)
RUT 580.49 + (not breached)
While DJI (clearly) and SPX (in a minor way) have breached the support and RUT turning south we need to be very cautious about this down leg continuing below the Feb 5 support.
Below is a quick chart of the SPX showing some levels and the recent EWT structure.
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