Things once again are starting to look very grim on the stock market. For awhile there we had a little momentum building, specially with the S&P 500, with daily buy signals and 1 weekly buy signal. As of the past few weeks all that has turned around and almost every index is firing sells on daily, weekly, and monthly charts. I’m still looking for the Santa rally but all I see is how the Grinch stole my retirement account.
The S&P 500 this week started off with hope that things might take off and start are Christmas rally. Come Thursday morning, that all went into the toilet. Even though we still have a ways to go before the S&P fires and new daily sell signal, warnings are strong and there is no way you could jump in based on what we see today. This week we had a lower pivot low formed at $1993 and and lower pivot high formed at $2076. Closing below $1993 would be a bad thing if that happens next week. The S&P 500 also fired a weekly Sell signal this week.
The Small Cap is also in desparate need to hold a level and start to climb to new highs, but I see no hope. Next week if we break down through the $988 level, that will be a daily sell signal. Just like the S&P, we created a new lower pivot low and new lower pivot high. This is a signal of lower prices.
The International Index is still floating lower week by week with no hint of finding support.
Here is the bright side, Bonds did hold support this week. Price did close once below support, but quickly re-established itself back above $108. That level is key.
Conclusion: I see nothing that is giving a hint that we are find support or buyers.
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