Sun Burn Monday

On the 60 Min SPX chart just about every short term indicator is smack in the middle, giving no clear signal.  The only thing you can see is that, SPX has started to make a small up trend, since its new low last week.  But there is a wall of resistance above it, there is the 21/50/200ema's, significant resistance levels from price action as well.  889 is my first important price level, its around the 21 EMA and the 21 Weekly EMA.

 

 Looking at the daily doesn't help giving to much direction, but techicanlly the stoch is oversold and RSI.  But it is also below its neck line, the 200MA. 

One thing to watch is the NYAD line, it is now below its 39EMA.  Notice how market trends down if this indicator stays below the NYAD.  Also watch for cross of all the moving averages. 

There still may be some more selling, TRIN still hasn't giving a signal of panic or exhausted selling.  I would like to see a TRIN above 2.00

There is some decent economic data this week which may move the market, plus earnings.   I am looking for a move down to 870-868, which may provide an area for a bounce. If this support breaks 800 will be seen fast.  If the market rallies, it will have to take 890 for me to consider going long. There is some bullishness factors right now, the divergences in the post below and the bearish sentiment in the market seen by the Put/Call Ratio, Decesion Points Sentiment Polls.  Plus the market rarely has 4 weeks down in a row.  Doesn't mean it can't happen.  So the trend is still down but it may change.