Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Tuesday, September 24, 2013

Market Weakens A Little

Stock Market Technical Analysis Blog

click on image to enlarge

In the market today we had what was a flat day turn south in the final hour for small index losses. I would like to focus again on the SPY (S&P 500 trading ETF).
  •  Lower left corner chart - SPY end of day sell down did hold once again at the center line of the mother channel
  • Upper left corner chart - today's candle was neutral with the orange and green EMAs approaching a merge situation tomorrow, a pivot point
  • Upper right corner chart - we see the tiny two day channel they are fiercely trying to maintain.  Also visible is the pre-Bernanke speech level shown with the horizontal red line.  That 171 SPY level, coinciding with 1710 on S&P is the level where I called a market top on 8/2.  That level is showing to be a fairly firm ceiling for the market excluding Ben's 2-hour bottlerocket short squeeze right after his speech which quickly reversed back down.
  • Bottom right corner chart - we are still considerably over extended above the 100 day EMA line.
Tomorrow will be an important day as  we may see the merge of the orange and brown short term EMAs in the upper left corner chart which will then likely produce a pronounced move from that pivot point.  It's not clear yet which direction the pivot will go because as the market continues to get heavier the more Ben and Co. put upward pressure on it.  

Trade well my friends


Blog Archive