With the real action taking place in the precious metals lately one might think that we’ve forgotten or at least downplayed the US stock market. Not so. Here’s the first part of NFTRH 564’s US Stock Market segment. We then went on to cover the various sectors, market internals, global markets, commodities, precious metals and so on and so forth. The whole shootin’ match, as usual.
Today the market took a step in the preferred short-term direction.
US Stock Market
And so the pig bounces. The bounce came as expected and it came from a logical support that resides at and above the SMA 200. It bounced to the SMA 50 and halted on Friday. 2936 to 2960 will be key resistance for it hold beneath to keep the bear case going. While STO is positive above 20 daily RSI and MACD do not look good. The yellow highlight is the level that SPX must not violate or it will go fully bearish, breaking its uptrend.
The weekly chart shows that the bounce came from the EMA 50, which generally supported the last decline. Again here you can see that the killer would be a drop below the last low, which was 2728.81.
The RSI divergence is and has been the negative panel indicator, while MACD has not shown its cards by either rolling over or breaking upward. It did take out its up trigger last week. Price is below key resistance with the market still in an uptrend.
The daily view of the headline indexes shows a crack below support, now resistance, in some cases coinciding with the SMA 50. The bounce always was going to be in play. But now it’s rubber meets road time. The status is that the up trending market has potential to break down, but needs to take out the SMA 200s and make lower lows to the May lows. The exception is the RUT, which is now a negative divergence to the others.
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