To say last week was bad for the daily charts is putting it lightly. If we have another week like that this week, sell signals will be firing and confirmed on almost every daily chart.
Starting out with Bonds, it is pretty easy to see that Bonds are just cruising along slowly but surely grinding out higher prices like a slug crawling across dry concrete. But, it is not losing money.
The S&P 500 daily movement is technically inside the Bullflag but is bouncing in and out of the bottom half. Also concerning here is the CBL warning sell level, the horizontal red line, failed Wednesday. So we now have the 1st sell warning on the daily chart. The sell level is $2044, which is the current 50 day moving average. I think the most crucial number here is the last pivot low, which I didn’t mark on the chart, but the price level is $2033. Closing below that level could mean bad things short term.
The Small Cap daily is also under the same pressures that the S&P 500 is under. A Bullflag was formed this week and price is solid in the channel. The 50 day ma is under the same pressure. A sell warning was fired Wednesday, so I will put a hold on the daily buy here. We are are also only 9 points away from a sell, if we reach $990. The crucial level is the last pivot low which is $978.
The International index took it on the chin this week. Price fired sell warning 1 & 2 on the same day, Wednesday. The confirmed a daily sell on Thursday. Friday prices did flatten out, but a sell is a sell, so as of now the I-fund is a sell on all 3 charts, daily, weekly, and monthly. You have to stay away unless you are gambling.
Conclusion: Lot’s of pressure was put on all the indexes this past week, with the exception of Bonds. Next week is a make or break week because of the warnings and the bullflags on the edge of failing. It’s time for a reversal or it could be on for lower prices.
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