Multiple metrics show the equity markets are in a very weak position. The NYSE Advance-Decline chart is actually becoming overbought with the market action of the past couple days. This is not a good sign.
The Nasdaq Bullish Percentage line has flattened and will roll over with additional weakness.
The Nasdaq Price Percentage Oscillator is moving down which does not lead to higher prices.
Charts courtesy of Stockcharts.com
6 responses so far ↓
This the crash I mentioned earlier. S&P500 1st target 1200 2nd target 900
nice job Andy, good thing we have stops! shew- we! I was not ready for this one, had my nose too far up Gustav, and Ike.
Mike,
SP500 at 1200 is only 3% lower than what it is now. do you think there will be a bounce on the way to 900, or do you think its just going to go straight down?
Kurt,I expect short-term bounces but nothing long-lasting. I am confident 1200 will be the main area of buying but the buyers will be overwhelmed and 1200 will give way. Don’t see any real support until 9200-900 area. If someone else sees’ something diffrent I am interested in hearing it. I have options until Oct 17 but everything I can see says it will be over by the end of the month. I could be wrong but either way it will fascinating and valuable education.
Correction-Major support at 1060 but I expect a quick overshoot as we go theough another “Bear Stearns” incident(s) and the Fed,Treasury and Plunge Protection Team go into action. 1060 is the safe way to play it.but with WaMu,Fannie,Freddie and Wachovia all “Dying” I feel frisky based on past behaviour.
I see 1150-1170 as the next significant support. This is a 50% retrace of several ranges.