Here are 16 things the charts are saying about the current market. Have a great trading day.
1. SPX monthly S2 comes in at 1929.98, which would be a good spot to get long for a bounce.
2. SPX RSI is 36.81, one of the lowest levels seen in the last 6 months, but not quite as low as the index reached in early August.
3. The MACD indicator on SPX is heading lower and looks to have a way to go before bottoming out.
4. Support on SPX comes in at 1925 and 1900-1905. Resistance is at 1958 which could be a good level to short on a dead cat bounce.
5. The uptrend in SPX is still in tact but it is right at the long term trendline.
6. RUT monthly S1 comes in at 1074.28 and S2 is at 1046.89. These are two good places to get long if you’re bullish.
7. RUT RSI is at 28.89, the lowest level seen in 6 months.
8. RUT has fallen almost 100 points in the last month and could be due for a short term bounce.
9. There is significant support for RUT at this level. There is potential for a triple bottom to form.
10. The McClellan Oscillator is at one of the lowest levels seen in 6 months.
11. The Put Call Ratio is at the highest level seen in 6 months.
12. The US New Highs New Lows Index is at the lowest level seen in 6 months.
13. In fact, this index is at levels not seen since June 2013.
14. AMZN has broken down through the wedge pattern that has been developing. Lower prices ahead potentially.
15. Momentum stocks TWTR and TSLA closed strongly on Wednesday in what could be a positive sign for the market on Wednesday.
16. My thoughts are that we see a 2-3 day dead cat bounce and then the selling will resume. What are you watching on the charts?
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