Yesterday's post I left you hanging on why I am in the bearish camp on the market. First is that the economy is not fixed. A a .01 uptick in unemployment "FIXED" and there are no green shoots.
To the charts now.
Here is a chart called MEGA B. It has all the breadth charts on it. If you look at the current trend of negative breadth (NYDNV and NYDEC), there is a new uptrend in this negative breadth. Both indicators have almost broken through their down trendline since the market has started it's run up in July. The last time $NYDEC broke it's downtrend line was in June after the market topped around it's 200EMA.
NYAD which has been mentioned a few times here recently has fallen below it's 8 day EMA. Notice the pattern that has occurred when the NYAD stays below it's 8EMA. If NYAD stays below its 8EMA it can start a pullback on SPX. So watch the internals today, if they are leaning towards negative side, NYAD should stay below its 8 day EMA. If they are really strong to the downside NYAD could break it's next EMA.
TICK- there is a divergence happening on with TICK. The market has been moving up but the strength of TICK has been falling. Here is a chart with the 2MA and 5MA, you can see the steady decline while the market has climbed.
NYMO-This indicator is still below zero which is bearish for the market.
August 11th NYMO gave a sell signal and was confirmed on August 14th as NYMO made another move below zero. It also looks to be basing underneath the zero line, which is bearish.
While I am in the bear camp, I am ready to put out the camp fire if SPX can get at least an hourly close above 990 or the hourly SPX 21EMA, bottom line 990 was once support is now resistance.
Right now futures look to be right at support so it is very possible for a gap down and a fade up today, but be aware of a trend day.
