Are The Bears Beginning To Take Control Of Stocks
Above is a daily chart of the S&P500 over the past 6 months. As you can see the market is now beginning to show an increase in volume on the down days which in my opinion is a sign that stocks may be in trouble. You'll notice the trendline is very close to being tested and is within a day's range away.
Given that we are seeing an increase in volume on the down days causes me to lean towards the bearish side and I expect the trendline to be broken.
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2 comments:
Kevin,
thanks for the update.
We will see tomorrow what happens in regards to the trendline. Stocks are selling hard in Asia overnight.
I'm personally short since yesterday.
Good luck,
Jack
Kevin:
The volume of $SPX and SPY is not the same. The volume change on $SPX is not that dramatic as that on SPY. Since last September, S&P has not broken its 50 MA on all dips. Let's see if Uncle Ben can still help to hold it this time.
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